A New Investor Profile Gains Strength

In the United States, Generation Z—young people born between the mid-1990s and early 2010s—is reshaping the investment landscape.

With digital access from a young age and greater financial awareness than many previous generations, this group has shown a growing interest in digital assets, especially cryptocurrencies.

If millennials paved the way for the digitization of investing, Gen Z is the generation solidifying crypto as a legitimate and strategic part of a portfolio.

Why Funds Instead of Direct Crypto Purchases?

Contrary to popular belief, Gen Z investors aren’t just buying Bitcoin or Ethereum directly.

In fact, many are choosing to invest through crypto-focused funds—such as ETFs (exchange-traded funds), specialized mutual funds, or managed investment vehicles—because of diversification, security, and convenience.

These funds offer exposure to different cryptocurrencies and tokens, including lesser-known assets, without the need to manage digital wallets, private keys, or the risk of user error.

Data Backing the Trend

A recent Charles Schwab study revealed that nearly 47% of Gen Z investors with brokerage accounts consider crypto investing to be “very important.”

Among them, a growing share prefers regulated vehicles like funds and ETFs, especially after recent turmoil in centralized crypto exchanges.

Fidelity Digital Assets also reported that the number of investors under 26 with indirect crypto exposure via funds grew by more than 80% between 2021 and 2024.

The same report suggests that trust in regulated products is directly tied to the desire for stability amid the volatility of digital assets.

The Influence of Digital Financial Education

Gen Z is growing up in an environment where personal finance content is widely available on TikTok, YouTube, and Reddit.

Many learn about blockchain, DeFi (decentralized finance), and crypto investing before even opening their first bank account.

This early exposure, coupled with skepticism toward traditional banks and a desire for financial independence, creates the perfect environment for exploring alternative investment routes.

Crypto funds serve as a bridge between technological innovation and the regulatory structure that provides confidence.

The Role of Fintechs and Accessible Platforms

Another key factor behind the crypto fund boom among young investors is the role of fintechs.

Platforms like Robinhood, SoFi, Public, and Wealthfront are offering crypto investment products in a user-friendly way, with low entry points—sometimes as little as $5 or $10 to get started.

In addition, these platforms frequently provide crypto rewards, gamified educational content, and integration with checking accounts and debit cards.

Trends Seen in 2025

• Interest in ESG-oriented crypto funds: Many Gen Z investors want to combine innovation with social and environmental impact. They look for funds with a lower carbon footprint or those that support social causes.
• Demand for fractional crypto exposure: Funds allowing fractional ownership of high-value assets like Bitcoin or Ethereum are attracting young people with limited capital but long-term wealth-building goals.
• Adoption of stablecoins: Some funds now incorporate stablecoins (such as USDC or DAI) to balance volatility and offer a more stable return. This strategy appeals to those who want crypto exposure with less risk.
• Diversification with utility tokens and DeFi: Beyond traditional cryptocurrencies, there’s strong interest in funds that include DeFi protocol tokens, financial NFTs, and digital assets with specific functions.

Risk Awareness and Mitigation Strategies

Despite the enthusiasm, Gen Z shows a mature understanding of the risks involved. They recognize the extreme volatility and regulatory uncertainty surrounding crypto assets.

As a strategy, many young investors allocate only a small percentage of their portfolio to crypto funds—typically between 5% and 15%—while maintaining the rest in stocks, bonds, and traditional funds.

This balanced approach demonstrates a more strategic than impulsive profile.

There’s also a clear preference for funds listed on traditional exchanges (like Nasdaq or NYSE) and regulated by institutions such as the SEC (Securities and Exchange Commission), which adds credibility.

Impact on the Traditional Financial Sector

Gen Z’s growing presence in the crypto fund market is putting pressure on traditional banks and asset managers to align with this demand.

Institutions like BlackRock, Grayscale, and Fidelity have launched or adapted products to attract younger investors.

Some asset managers are already testing products that can be traded on the blockchain, with instant settlement and lower operating costs—something highly valued by this connected generation.