Crypto could see $6 trillion from inheritances over 20 years: VanEck's Matthew Sigel

VanEck’s Head of Digital Assets Research Matthew Sigel said more than $6 trillion could flow into crypto from inheritances over the next 20 years.

On July 8, Sigel cited the 2024 Bank of America Private Bank Study, which said that Gen X, millennials, and future generations could inherit $84 trillion from seniors and Baby Boomers through 2045.

For $6 trillion to flow into crypto, young US investors aged 21-43 must inherit $42 trillion from Baby Boomers and continuously allocate 14% of the amount to crypto investment. Young investors must invest $300 billion annually over the next 20 years.

The study said that young self-identified aggressive investors allocated 14% to crypto, while young moderate and conservative investors allocated 12% and 17%, respectively.

Bank of America highlighted the finding, noting that “the most conservative group is holding the highest average exposure to crypto.”

By contrast, investors 44 and up had virtually no crypto allocation in their portfolios.

Crypto seen as growth opportunity

The study also found that 28% of investors aged 21-43 see crypto as having the most opportunities for growth. The finding places crypto investment as young investors’ second highest-rated investment, after real estate, favored by 31% of young investors, and private equity, favored by 26%.

By contrast, 4% of investors aged 44 and up said that crypto has the most growth opportunities, placing it second lowest on their rankings list.

Bank of America said that differences between young and old investors extend “beyond allocations to crypto or private investments” and point to more fundamental changes. It noted that 72% of young investors believe they can no longer obtain higher-than-average returns solely by investing in traditional stocks and bonds. Meanwhile, only 28% of investors aged 44 and up agreed.

Bank of America also speculated that young investors’ interest in crypto could be related to uncertainty. It noted that many crypto industry members compare crypto to investments such as gold and said that crypto may be “strikingly risk-averse for young, wealthy people” from some perspectives.