Grayscale's head of research, Zach Pandl, argued in a report released Aug. 10 that the global shift away from traditional stocks and bonds could become a lasting tailwind for crypto. Alternative assets, he said, are now a meaningful component of investment portfolios, and this trajectory may support digital assets over the long run.
Since the 2008 global financial crisis, the size of the global alternative-assets market has grown nearly sevenfold, the report said. Private equity, private credit, hedge funds, real assets and crypto have each increased their share of global portfolios.
Younger investors are showing a notably stronger appetite for these categories. Grayscale cited a Bank of America survey of high-net-worth investors: those aged 21–43 hold an average of 53% of their portfolio in assets outside traditional stocks and bonds, compared with 26% for investors aged 44 and older.
Grayscale expects more than $100 trillion in wealth to transfer to younger generations over the next few years. If that capital carries the same preference for alternative assets, it could become important support for the crypto market's development.
The report points to lower entry barriers as a major reason behind the growth of alternatives. New financial products and trading platforms allow investors to participate without relying on complex infrastructure or professional experience.
Crypto has gone through a similar evolution. Regulated bitcoin ETFs/ETPs and institutional-grade market infrastructure offer investors a more convenient and familiar way to allocate, the report noted.
Grayscale concluded that younger investors are increasing their alternative-asset allocations and showing greater acceptance of crypto. That combination, it said, could push the crypto asset class to keep expanding.