VanEck Digital Asset Research Director: More than $6 trillion in inheritance may flow into cryptocurrencies in the next 20 years

Matthew Sigel, head of digital asset research at VanEck, said more than $6 trillion in inheritances could flow into cryptocurrencies over the next 20 years. Sigel cited a 2024 Bank of America Private Banking Study, which said that by 2045, Generation X, Millennials, and future generations will inherit $84 trillion in wealth from older and baby boomers. For $6 trillion to flow into cryptocurrencies, young American investors aged 21-43 would have to inherit $42 trillion from baby boomers and consistently allocate 14% of their funds to cryptocurrencies. Young investors would have to invest $300 billion per year over the next 20 years. The study said that young aggressive investors allocated 14% of their funds to cryptocurrencies, while conservative investors in the same age group allocated 12% and 17%, respectively. Bank of America highlighted this finding, noting that "the most conservative groups hold the highest average exposure to cryptocurrencies." In contrast, investors aged 44 and older have almost no crypto allocations in their portfolios. The study also found that 28% of investors aged 21-43 believe that cryptocurrencies offer the most growth opportunities. This finding suggests that cryptocurrency investing is the second most popular investment among young investors, behind real estate and private equity, which are favored by 31% and 26% of young investors, respectively. In contrast, 4% of investors aged 44 and older said that cryptocurrencies offer the most growth opportunities, ranking second. Bank of America said the differences between younger and older investors "go beyond allocations to cryptocurrencies or private investments" and pointed to more fundamental changes. The report noted that 72% of young investors believe that they can no longer earn above-average returns simply by investing in traditional stocks and bonds. Meanwhile, only 28% of investors aged 44 and older agreed with this view. Bank of America also speculated that younger investors' interest in cryptocurrencies may be related to uncertainty about them. (CryptoSlate)