A new report from Coinbase suggests a widening generational divide in how Americans invest, with younger cohorts increasingly favoring crypto and other non-traditional assets over legacy financial products. Coinbase CEO Brian Armstrong said the findings highlight a perception among younger Americans that traditional finance no longer offers a viable path to wealth creation.
The “State of Crypto” survey, conducted by Ipsos in the fourth quarter among 4,350 US adults, shows stock ownership remains relatively consistent across age groups. However, portfolio composition differs sharply. Younger investors report allocating about 25 percent of their holdings to non-traditional assets such as cryptocurrencies, derivatives, and private investments, compared with just 8 percent among older investors.
Portfolio Allocation and Trading Behavior
Trading activity also diverges along generational lines. Nearly 30 percent of younger investors say they trade at least weekly, versus 10 percent of older respondents. Use of higher-risk strategies is more common as well, with younger investors more likely to employ margin and seek higher returns through volatile assets.
Demand for broader market access is another differentiator. More than 60 percent of younger respondents expressed interest in round-the-clock trading for stocks, reflecting expectations shaped by crypto markets that operate continuously. Interest in crypto derivatives, leverage, and decentralized finance lending also remains elevated among this group.
From an institutional perspective, the data underscores how market structure and product design may need to adapt as younger investors enter their prime earning and investing years. Platforms offering multi-asset exposure and flexible trading hours appear better aligned with these evolving preferences.
Access, Perception, and Alternative Channels
The report points to access constraints as a key driver of behavior. Nearly three-quarters of younger adults believe it is harder for their generation to build wealth through traditional means, compared with just over half of older respondents. Younger investors are also twice as likely to own crypto, reinforcing the role of digital assets as a perceived alternative route to financial mobility.
Information sources are shifting as well. Younger investors increasingly rely on social platforms, online communities, and peer networks rather than traditional financial advisers. About two-thirds said they would consider copy or social trading, compared with less than one-third of older investors.
Armstrong framed the findings as evidence of structural shortcomings in the existing financial system. For financial institutions and product developers, the survey highlights rising demand for risk-tiered offerings, digital-first platforms, and continuous market access as competition intensifies for the next generation of investors.
