Grayscale says younger investors allocate 53% to alternatives, including crypto. With $100 trillion in wealth transfer, easier access to regulated products could drive adoption.
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Younger investors are allocating more than half their portfolios to assets outside stocks and bonds, with crypto emerging as a key beneficiary of the shift, according to Grayscale research. The firm published a report citing a Bank of America survey of high-net-worth individuals that found investors aged 21 to 43 put 53% of their holdings in alternatives – private equity, credit, hedge funds, real assets and crypto. That compares with just 26% among those over 44.
The global alternatives market has grown nearly seven-fold since the 2008 financial crisis. Private credit, real estate and crypto now command a larger share of institutional and retail portfolios. Grayscale said the expansion reflects both strong historic returns and easier access to products that were once limited to large institutions.
More than $100 trillion is expected to transfer to younger generations over the coming years. If those investors maintain their current preference for alternatives, crypto could capture a portion of that wealth shift, the report said. Grayscale noted that the demographic tailwind is one of several factors that could sustain demand for digital assets.
Access has also improved. Regulated investment products such as Bitcoin exchange-traded products (ETPs) and institutional market infrastructure have created more familiar entry points into crypto, Grayscale said. The same trend has played out across alternatives, with new platforms reducing the minimums and expertise historically required to invest in private markets.
Grayscale did not offer a specific forecast for crypto prices or inflows. The report framed the demographic shift as a structural factor that could reinforce crypto's role in portfolios, provided access continues to improve. The company pointed to the growing availability of regulated products as a key enabler.
The alternatives market is now seven times larger than in 2008. Younger investors are leading the allocation change, and the next wave of wealth transfer may amplify the trend. For a broader look at how crypto fits into shifting portfolio strategies, see crypto market analysis.
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