Grayscale research head Zach Pandl says the global alternative assets market has grown nearly sevenfold since the 2008 financial crisis, with investors cutting exposure to traditional stocks and fixed income in favor of private equity, private credit, hedge funds, real assets and cryptocurrencies. A Bank of America survey of high-net-worth investors found that those aged 21-43 hold an average of 53% of their portfolios in assets other than traditional stocks and bonds; for investors over 44, the share is 26%. Pandl said more than $100 trillion is expected to transfer to younger generations in the coming years, and their preference for higher alternative allocations could provide sustained inflows to crypto. He attributes the fast growth of alternatives partly to easier access: historically these investments required specialized institutions, complex infrastructure and high barriers, while new products and platforms now lower participation hurdles. He sees the same pattern in digital assets as Bitcoin exchange-traded products, institutional-grade trading infrastructure and clearer regulatory frameworks make it simpler for investors to gain exposure through familiar and compliant channels. In his view, the rising alternative allocation among young investors could become a significant long-term factor fueling the expansion of crypto as an asset class.
Grayscale research head Zach Pandl says the global market for alternative assets has grown nearly sevenfold since the 2008 financial crisis, as investors accelerate their move away from traditional stocks and fixed income toward private equity, private credit, hedge funds, real assets and crypto.
Wealth transfer between generations could reinforce that shift, Pandl said. A Bank of America survey of high-net-worth investors found that people aged 21 to 43 allocate an average of 53% of their portfolios to assets outside traditional stocks and bonds. For investors older than 44, that share drops to 26%.
Pandl says more than $100 trillion in wealth is projected to move to younger generations over the next few years. If younger investors keep favoring alternative assets, that shift could give crypto a durable source of long-term capital.
One reason for the asset class's rapid expansion, he argues, is easier access. In the past, alternative investing required specialized institutions, complex infrastructure and steep barriers. New products and platforms have lowered the hurdle. Crypto is following a similar path: Bitcoin exchange-traded products, institutional-grade trading infrastructure and maturing regulatory frameworks let investors gain exposure in familiar, compliant ways.
His conclusion: the trend among young investors toward larger alternative allocations could become a significant long-term factor behind the continued growth of crypto assets.
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