Gen Z users on crypto exchanges are showing a more conservative streak than many market assumptions would suggest, according to Binance Research data cited by CryptoSlate analyst Andjela Radmilac. In early August, ETFs made up 25% of Gen Z direct stock trading volume, up from 14.6% in June. For millennials, the figure was 9.5% over the same period.
The report said Gen Z users on Binance were more likely to allocate to unleveraged ETFs, trade less frequently than millennials and Gen X, and use leveraged products more as short-term tools than as long-term holdings.
Binance Research published the report on Aug. 12, examining how different generations used direct stocks, tokenized bStocks, and traditional finance perpetual contracts on the exchange. Across those three product categories, Gen Z posted the lowest turnover among working-age groups. The report added that the conclusion was based on short-term Binance user data and noted that its direct stock product only reached scaled rollout in June 2026.
The generation definitions used in the report were:
- Gen Z: 1997–2012
- Millennials: 1981–1996
- Gen X: 1965–1980
- Baby boomers: 1946–1964
ETF share rose sharply in Gen Z stock trading
ETFs showed the clearest generational split in the data. In early August, ETFs accounted for 25% of Gen Z direct stock trading volume, compared with 14.6% in June. Millennials were at 9.5%, meaning the share of stock trading that Gen Z directed to funds was more than double that of millennials.
Net flow composition pointed in the same direction. In June, unleveraged ETFs represented 18.5% of Gen Z net inflows into stocks. That rose to 21.9% in July. Over the same period, the share of inflows going to individual stocks fell from 77% to 74.2%.
Gen Z overall stock net investment fell 17.4% in July, but inflows into unleveraged ETFs were nearly unchanged, slipping just 2%. Inflows into individual stocks dropped 20.4%, while leveraged product inflows fell 28.5%.
Binance data also showed Gen Z was the only group to post growth in the number of ETF holders in July, up 2.9%. Millennial ETF holders fell 4.5%, and Gen X holders declined 5.9%.
That suggests ETFs were not just a side allocation made between speculative trades. When Gen Z reduced overall stock investment, ETFs remained the area where capital kept coming in.
Largest average buys went to SCHD and Broadcom, not the most crowded retail names
The report said that among Gen Z accounts that had only bought and never sold, the highest average single direct stock purchase was in the Schwab U.S. Dividend Equity ETF (SCHD), at $16,567. Broadcom ranked second at $12,370.
Portfolio positioning was described as heavily tilted toward semiconductors and AI. At the same time, average single purchases in bStocks for heavily traded retail names were much smaller. Tesla averaged $633 per buy, while Nvidia averaged $514.
In other words, the report said Gen Z still showed interest in technology and AI, but larger allocations were not concentrated in the most hype-driven single names.
More accounts were net accumulators and fewer were active sellers
Holding data reinforced that pattern. About 22% of Gen Z direct stock accounts had never placed a sell order. The figure was 19% for Gen X and 9% for baby boomers. Millennials led on the strict "never sold" measure at 30%.
When the definition was broadened from "never sold" to "bought more than sold," Gen Z moved to the top. Roughly 76% of Gen Z bStocks accounts were net accumulation accounts, the highest among all generations and 9 percentage points above millennials.
In direct stocks, 77% of Gen Z accounts continued adding to positions. The comparable figures were 74% for Gen X and 68% for baby boomers. The report said that in Binance segments centered more on asset holding than short-term derivatives trading, Gen Z users were mostly still building positions.
Perpetual contract activity was lower than in older groups
Gen Z also traded traditional finance perpetual contracts less often than older users. The average Gen Z account made 13 such trades per month, compared with 17 for millennials, 16.5 for Gen X, and 19 for baby boomers.
Only 14% of Gen Z perpetual accounts were classified as high-frequency traders. That was below the 18% seen in both millennials and Gen X, and also below the 16% recorded for baby boomers.
The report highlighted the contrast directly: 22-year-old users trading stock-related perpetuals through a crypto exchange were doing so less often than baby boomers.
Use of leveraged and inverse ETFs followed the same pattern. Among Gen Z traditional finance perpetual accounts, 88.2% did not trade leveraged or inverse ETFs. The figures were 84.5% for millennials and 85.9% for Gen X. In bStocks, 98.9% of Gen Z accounts avoided those products, a higher share than in other working-age groups.
Baby boomers still ranked highest overall in avoiding leverage and inverse exposure. In direct stocks, 98.9% of baby boomer users stayed away from those products, compared with 96.5% for Gen Z. The report said Gen Z had not become identical to baby boomers, but among non-retired groups their behavior looked strikingly similar.
Leverage was used for trading, while long-term capital stayed in stocks
The report drew a distinction between what users traded and where they actually left capital. In July, leveraged and inverse ETFs accounted for 9.25% of Gen Z direct stock turnover, but only 3.93% of net inflows. By early August, their share of net inflows had fallen again to 2.65%.
That, according to the report, placed leverage where it was being used as a short-term position rather than a destination for long-term principal.
Traditional finance perpetuals showed a similar split. Around 60% of Gen Z accounts were net buyers, the highest share across age groups, but net capital flow was less than 1% of total trading volume. The report said traders were opening and closing positions repeatedly, with little long-term capital left in that segment.
Stocks looked different. Gen Z direct stocks posted a net flow ratio of 26.5%, with average net inflows of $1,898 per account.
That is why looking only at whether younger users trade perpetuals can miss the broader picture, the report argued. They do use those products, but they keep long-duration capital elsewhere.
Binance said emerging-market access may help explain the pattern
Earlier Binance research on younger investors found that Gen Z made up about 44% of its direct stock and bStocks users, and 45% of traditional finance perpetual users. Gen Z was the largest user group in direct stocks and bStocks, while in traditional finance perpetuals it was roughly on par with millennials.
The report also said that across all generations, more than 90% of users of these traditional finance products came from emerging markets, where buying U.S. stocks through local traditional brokers can be difficult.
For some of those users, a crypto exchange may function as the easiest available brokerage channel. The report pointed to familiar platform interfaces, funded accounts, fractional-share access, and the ability to trade outside regular U.S. market hours.
Binance data showed that 13% of all direct stock users were Gen Z clients from emerging markets with less than $2,000 in stock assets.
On that basis, the report said an exchange does not need to turn every young user into a perpetual trader. It can also serve as a route into standard investment products.
The report contrasted that behavior with earlier crypto product culture
The article also referenced earlier crypto products whose branding leaned heavily into novelty. Pickle Finance launched Jar and Farm products that let users deposit tokens and stack yields from other protocols. ShibaSwap used "Bury" to describe staking and featured token names such as SHIB, LEASH, and BONE in its interface.
The report said years of products like these helped create a common assumption that younger investors raised in the Dogecoin era would be more comfortable with chaotic, high-risk financial structures.
Binance Research data pointed the other way. Younger users were directing more stock capital into unleveraged ETFs, trading less often than millennials and Gen X, and keeping leverage-related allocations to a small share of net investment.
The article added that this did not mean Gen Z had abandoned crypto. A 2023 survey by the FINRA Investor Education Foundation and the CFA Institute found that 55% of U.S. Gen Z investors held cryptocurrencies. CryptoSlate had also previously reported broad interest in digital assets among younger Americans.
Within the report's framework, using crypto and seeking the highest-risk possible investment are not the same thing. For users entering financial markets through an exchange app for the first time, Binance may not simply be an alternative to a traditional broker. It may just be the financial interface they already know. Once stocks and ETFs are available on that platform, their preferences do not have to mirror the speculative style associated with earlier crypto cycles.
The report's closing observation was that Gen Z is not building a classic retirement portfolio. They still hold semiconductor names, AI stocks, tokenized equities, and products tied to 24-hour markets. But the way they handle those products looks unexpectedly old-school: buy, hold more than sell, and avoid making every position depend on leverage.