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Gen Z investors on Binance are shifting more of their equity activity toward exchange-traded funds, a trend that stands out against the platform’s older, more stock-focused user base. New data from Binance Research shows ETFs made up 25% of the cohort’s trading volume in early August — a jump that signals a generational change in how young traders approach markets.
The Numbers Behind the Shift
The trend has been building for weeks. ETFs accounted for 21.9% of Gen Z’s net equity inflows in July, up from 18.5% in June. Over the same period, the share going to individual stocks slipped from 77% to 74.2%. It’s a modest but consistent move, and it suggests younger traders are leaning toward diversified exposure rather than picking single names.
Binance Research pulled the numbers from a broader study comparing Gen Z with Millennials, Gen X and Baby Boomers across direct equities, tokenized stocks and traditional finance perpetuals, looking at trading frequency, net flows and leverage use.
Cautious by Comparison
One theme runs through nearly every metric: Gen Z trades less aggressively than older cohorts. They averaged just 13 monthly trades in TradFi perpetuals, well below Millennials’ 17 and Gen X’s 16.5. They also steered clear of leveraged and inverse ETFs — 88.2% of Gen Z perpetual accounts saw no activity in those products at all, a higher abstention rate than Millennials or Gen X.
The buy-and-hold instinct shows up elsewhere too. Among Gen Z’s direct-equity accounts, 22% have never placed a single sell order — more than Gen X’s 19% and far more than Baby Boomers’ 9%. Their favorite names to accumulate: Broadcom, Tesla and the Schwab US Dividend Equity ETF.
Also Read: Robinhood’s Prediction Markets Just Beat Crypto Revenue — Now Binance.US Wants In
Binance noted its direct-equities product only reached meaningful scale in June, so the sample size and time frame remain limited.
Tokenized Stocks Have Their Own Race Underway
Separately, Binance’s bStocks briefly passed Kraken’s xStocks to become the second-largest tokenized stock issuer, less than two months after launch, holding $610.6 million in tokenized stock value on Tuesday versus xStocks’ $601.2 million. By Friday, the lead had flipped back to xStocks. Ondo Finance still leads the field overall. The broader tokenized stock market keeps growing regardless, hitting roughly $2.43 billion in tracked value, up about 5% over the past month.
Together, the data paints a picture of a generation trading carefully, favoring funds over speculation, even as the tokenized asset race around them heats up.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
