Binance Research: Gen Z Prefers ETFs, Trades Less Frequently, and Uses Less Leverage Than Other Age Groups

BlockBeats News, August 15th. According to Binance Research data, Gen Z investors are gradually shifting towards long-term asset allocation tools such as ETFs. Compared to Millennials, Gen X, and Baby Boomers, Gen Z investors trade less frequently and show a weaker preference for leverage.

The data shows that in early August, ETFs accounted for 25% of Gen Z users' stock trading volume. In July, the proportion of ETFs in Gen Z stock net inflows reached 21.9%, higher than June's 18.5%; during the same period, the proportion of individual stock investments decreased from 77% to 74.2%.

Binance Research analyzed direct stocks, tokenized stocks, and traditional financial perpetual contracts. The data shows that Gen Z's trading activity in these three asset classes is lower than other working-age groups.

Specifically, Gen Z perpetual contract accounts trade an average of 13 times per month, lower than Millennials' 17 times and Gen X's 16.5 times. In direct stock accounts, 22% of Gen Z users have never sold stocks, higher than 19% of Gen X and 9% of Baby Boomers.

Among Gen Z accounts that have bought but not sold, the assets with the highest cumulative purchase amount include Broadcom, Tesla, and the JPMorgan US Dividend Growth ETF.

Regarding leveraged products, Gen Z shows a lower risk appetite. The data shows that 88.2% of Gen Z perpetual contract accounts have never traded leverage or inverse ETFs, higher than 84.5% of Millennials and 85.9% of Gen X.

Furthermore, the tokenized stock market continues to expand. The data shows that Binance's bStocks, recently surpassed Kraken's xStocks, becoming the world's second-largest tokenized stock issuance platform. As of the latest data, Ondo Finance ranks first in tokenized stock value with approximately $972 million, while xStocks and bStocks are approximately $611 million and $580 million, respectively.