Schwab Survey: Nearly Half of ETF Investors Eye Crypto ETFs

Schwab Survey Highlights Growing Interest in Crypto ETFs

According to a report from brokerage giant Schwab Asset Management, almost half of exchange-traded fund (ETF) investors are planning to allocate capital to crypto ETFs. This figure matches the number of respondents expressing interest in bond ETFs.

Schwab's "ETFs and Beyond" report, released Thursday, revealed that 52% of surveyed investors intend to invest in U.S. equities, while 45% are considering crypto ETFs, tying for second place with U.S. bonds.

Eric Balchunas, senior ETF analyst at Bloomberg, commented in an X post that the results were surprising, given the substantial size of the bond market. He noted, "This was also shocking to see crypto tied with bonds for second place in where people plan to invest. Majorly punching above weight given crypto is 1% of total ETF AUM [assets under management] while bonds are 17%."

The Schwab survey polled 2,000 individual investors aged 25 to 75, with half having actively traded ETFs in the past two years and possessing at least $25,000 in investable assets.

Millennials Exhibit Stronger Appetite for Crypto ETFs

The report highlighted that Millennial investors (born between 1981 and 1996, aged 29-44) displayed a greater inclination towards crypto ETFs compared to other demographic groups.

Approximately 57% of Millennial respondents indicated plans to invest in crypto via ETFs, versus 41% of Gen X individuals (born between 1965 and 1980).

Baby Boomers (born between 1946 and 1964) showed the least interest in crypto ETFs, with only 15% expressing investment intentions.

Balchunas described the overall survey sentiment as "super-optimistic" for ETFs, with a general expectation of increased usage, particularly among younger generations.

Low Costs and Accessibility Drive ETF Adoption

Key factors influencing ETF adoption were identified as low costs and accessibility, with 94% of respondents acknowledging that ETFs help control portfolio expenses.

Furthermore, roughly half strongly agreed that ETFs enable investment in niche or specialized strategies separate from core, long-term holdings and provide exposure to diverse asset classes.

David Botset, Managing Director at Schwab Asset Management, stated that "the world of investing is undergoing a rapid transformation as individual investors gain access to new asset classes, investing strategies and vehicles."

He added, "ETF investors are at the forefront of this evolving landscape. They are using ETFs, which now outnumber individual stocks in the US, not only for low-cost core portfolio investments but also to explore the expanding universe of investment opportunities."