According to the survey by Charles Schwab more than half of the young people under the age of 37 buy cryptocurrencies.
Charles Schwab is the largest broker in the world, with over $3 trillion under his management, including stocks, bonds, certificates of deposit (CDS), exchange-traded funds (ETFs), and contracts for difference (CFDs). The company has a negative attitude towards cryptocurrencies as a class of volatile assets.
However, the company's clients are gradually getting younger and it is already difficult for them to sell something from the list of obsolete assets that the company has. Even among the old clients of the broker aged 55 and over, more than 10% began to buy cryptocurrencies.
Charles Schwab conducts such surveys every year and has seen a 15% growth in crypto investors among its clients year after year. Over the year, the growth was 7 percentage points (or 15%) from 44% to 51%. Moreover, according to the survey, more than 70% of the broker's clients have a positive attitude towards cryptocurrencies and are thinking about buying them.
It is hard for a company to admit that it is losing the market at such a rate. If this trend continues, Charles Schwab will lose 90% of client money in 4 years. The company has no choice but to follow the JPMorgan route and start providing customers with services for buying and storing cryptocurrencies.
“Cryptocurrencies seem to be the flavor of the month...
It is important to remember that these are speculative assets that don't fit within traditional asset-allocation models...While the prospective returns are tempting, investors should be aware that it is just as susceptible to supply and demand, but will not necessarily have the inherent value behind it.”
However, the situation is that young people no longer listen to such arguments. The stock market is no less risky than cryptocurrencies. For example, in the list of the company's products, there are so-called Contracts for Difference (CFD), which is just a cyber casino.
And the top management understands this. Charles Schwab CEO Walt Bettinger said the team is looking "carefully" and "cautiously" at the crypto market and waiting for regulators to provide more guidance on digital currencies before considering offering crypto opportunities on their platform.
In fact, Charles Schwab is already preparing crypto products for its US customers.
Banning cryptocurrencies is not only late, but it is more and more impractical. When more than half of the clients of the stock market enter crypto, the banks and brokers themselves will oppose the bans.
