Binance Research said Gen Z investors are shifting more of their stock exposure toward ETFs and showing lower trading intensity than older age groups. The data showed that, by early August, ETFs accounted for 25% of stock trading volume among Gen Z users. In July, ETFs made up 21.9% of Gen Z stock net inflows, up from 18.5% in June, while the share allocated to individual stocks fell from 77% to 74.2% over the same period.
The study covered trading activity in direct equities, tokenized stocks, and traditional finance perpetual futures. Across all three categories, Gen Z posted lower activity than other working-age groups. In traditional finance perpetual futures accounts, Gen Z averaged 13 trades per month, below millennials at 17 and Gen X at 16.5. In direct stock accounts, 22% of Gen Z users had never sold a stock, compared with 19% of Gen X and 9% of baby boomers. Among Gen Z accounts that bought but never sold, the largest cumulative purchases were Broadcom, Tesla, and the Schwab U.S. Dividend Equity ETF.
Binance Research also found lower risk appetite in leverage products. It said 88.2% of Gen Z traditional finance perpetual futures accounts had never traded leveraged or inverse ETFs, versus 84.5% for millennials and 85.9% for Gen X. Separately, Binance’s bStocks briefly overtook Kraken’s xStocks to become the world’s second-largest tokenized stock issuance platform, while Ondo Finance remained first at about $972 million, ahead of xStocks at about $611 million and bStocks at about $580 million.
Binance Research said Gen Z investors are moving toward ETFs and other long-term allocation tools, with lower trading frequency and weaker appetite for leverage than millennials, Gen X, and baby boomers.
ETF share rises in Gen Z stock activity
The data showed that, in early August, ETFs accounted for 25% of stock trading volume among Gen Z users. In July, ETFs made up 21.9% of Gen Z stock net inflows, up from 18.5% in June. Over the same period, the share allocated to individual stocks fell from 77% to 74.2%.
Binance Research analyzed trading behavior across direct equities, tokenized stocks, and traditional finance perpetual futures.
Lower activity across three asset categories
Gen Z recorded lower trading activity than other working-age groups in all three categories covered by the study.
In traditional finance perpetual futures accounts, Gen Z users averaged 13 trades per month. That compared with 17 for millennials and 16.5 for Gen X.
In direct stock accounts, 22% of Gen Z users had never sold a stock. The figure was 19% for Gen X and 9% for baby boomers. Among Gen Z accounts that bought but did not sell, the assets with the highest cumulative purchase amounts included Broadcom, Tesla, and the Schwab U.S. Dividend Equity ETF.
Lower use of leverage products
On leverage products, the report pointed to lower risk tolerance among Gen Z. It said 88.2% of Gen Z traditional finance perpetual futures accounts had never traded leveraged or inverse ETFs, compared with 84.5% for millennials and 85.9% for Gen X.
Tokenized stock platform rankings
The data also showed continued expansion in the tokenized stock market. Binance’s bStocks briefly surpassed Kraken-owned xStocks to become the world’s second-largest tokenized stock issuance platform.
Based on the latest figures, Ondo Finance ranked first with about $972 million in tokenized stock value. xStocks and bStocks followed at about $611 million and $580 million, respectively.
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