Binance data shows Gen Z traders shifting to ETFs, with 25% of volume in passive funds. Leverage usage is lowest among younger cohort, while buy-only accounts hold 22%.
Alpha Score of 49 reflects weak overall profile with weak momentum, poor value, strong quality, moderate sentiment.
Binance released data on trading patterns across generations, and the Gen Z numbers stand out. ETFs now account for 25% of Gen Z trading volume on the platform, up from 18.5% of net equity inflows in June to 21.9% in July, according to Binance Research. Individual stock allocations fell from 77% to 74.2% over the same period.
The direct-equities product only started gaining traction in June, so the window is short. Still, the shift is fast. Gen Z also trades less frequently than older cohorts, averaging 13 monthly trades in traditional finance perpetuals, Binance said. Millennials averaged 17, Gen X 16.5.
Leverage usage is even more lopsided. A full 88.2% of Gen Z TradFi perpetual accounts showed zero activity in leveraged and inverse ETFs, the highest abstention rate across all generations. That compares with 84.5% for Millennials and 85.9% for Gen X.
Buy-only accounts are common among younger investors. Among Gen Z direct-equity accounts, 22% had never executed a sell order, Binance said. For Millennials, that figure was 30%, the highest of any generation. Gen X came in at 19%, Baby Boomers at 9%.
Top holdings in those buy-only accounts included Broadcom, Tesla, and the Schwab US Dividend Equity ETF, according to the data.
Separately, the tokenized stock market is tightening. Binance’s bStocks briefly overtook Kraken’s xStocks in total value, hitting $610.6 million, before xStocks reclaimed the lead at $610.7 million, with bStocks dropping to $579.6 million by Friday. Ondo Finance held $971.8 million in tokenized stock value, making it the largest issuer, according to RWA.xyz.
The broader tokenized stock market sat at $2.43 billion as of Friday, a 5% increase over the previous 30 days.
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