Gen Z traders on Binance are shifting equity activity to ETFs, which made up 25% of their August trade volume. The cohort trades less and uses less leverage than Millennials or Gen X.
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Gen Z traders on Binance are allocating a growing share of their equity activity to exchange-traded funds, with the products accounting for 25% of the cohort's trading volume in early August, according to Binance Research.
ETFs made up 21.9% of Gen Z net equity inflows in July, up from 18.5% in June, while the share going to individual stocks fell to 74.2% from 77%. The analysis covered direct equities, tokenized stocks and traditional finance perpetuals, comparing Gen Z accounts with Millennials, Gen X and Baby Boomers on trading frequency, net flows and leverage use.
The younger cohort traded less than other working-age generations across all three products. Gen Z averaged 13 monthly trades in TradFi perpetuals, versus 17 for Millennials and 16.5 for Gen X. Among Gen Z direct-equity accounts, 22% had never placed a sell order, compared with 19% of Gen X accounts and 9% of Baby Boomer accounts. Millennials had the highest share of buy-only accounts at 30%. For Gen Z buy-only accounts, top assets by cumulative purchases included Broadcom, Tesla and the Schwab US Dividend Equity ETF, Binance said.
Gen Z also showed limited interest in leveraged and inverse ETFs. Some 88.2% of Gen Z TradFi perpetual accounts recorded no activity in those products, versus 84.5% of Millennials and 85.9% of Gen X.
Binance cautioned that its direct-equities product only reached meaningful scale in June, leaving a relatively short data window for establishing longer-term trends.
Separately, Binance's bStocks briefly overtook Kraken's xStocks as the second-largest tokenized stock issuer this week, less than two months after launching. As of Tuesday, bStocks held $610.6 million in tokenized stock value, compared with $601.2 million for xStocks, per Token Terminal data. The positions had reversed by Friday, with xStocks at $610.7 million and bStocks at $579.6 million. Ondo Finance remained the largest issuer at $971.8 million.
The tokenized stock market has continued to expand. RWA.xyz tracked $2.43 billion in distributed value as of Friday, up about 5% over the past 30 days.
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