For many investors, bonds and equities are the most vanilla of financial instruments. Of course, professional investors often employ more complex tools in pursuit of sophisticated hedging and speculative strategies. But when we think of the basics of investing, many of us default to stocks and bonds, either individually or as part of an index.

Crypto, by contrast, is exotic, unfamiliar and unpredictable. Its movement can’t always be explained by familiar forms of market analysis. And it is not traded, or regulated, in traditional ways.

Generation Crypto

Perhaps we are just revealing our age. A World Economic Forum survey found that Gen Z begin investing earlier than other generations. It also reveals a comfort and familiarity for crypto over traditional assets:

“The survey finds retail investors increasingly view cryptocurrency as more understandable and easier to understand than traditional investments like ETFs, mutual funds, bonds, and stocks. While 29% avoid stocks due to a lack of understanding, only 24% say the same about crypto. Among investors under 44 who hold cryptocurrencies, more than half allocated at least a third of their portfolio to it.”

New tools for new trades

Younger investors don’t merely have an appetite for new asset classes. They also favour innovative trading techniques. According to a recent survey, “67% of Gen Z traders activated at least one AI-powered trading bot in the second quarter of 2025,” a significant increase compared to older investors.

Investor diversification

Another marked characteristic of the average investor … is that in some ways there is no longer such thing as the average investor. A JPMorgan Chase report shows that retail investors have become younger and more racially diverse.

The report did reveal an interesting anomaly. Looking at the period 2020-201, periods of high volatility saw increased market participation by men (and a relative decline in market participation by women). Young people also were especially active during volatile periods under consideration.

Responsible innovation

In summary, the modern retail investor is younger, comfortable with digital assets, eager to deploy cutting-edge tools, and (in the case of young men in particular) keen to seize the opportunity when others may be ducking for cover. They value a diversity of assets, and prize fast, seamless market access. They want to trade on their own terms, but also seek access to up-to-date data, guidance and technology.

At the same time, we should recognise the possibility that young investors could take the power of AI for granted without fully considering the risks, while strongly favouring unusually volatile assets.

The financial industry must evolve to responsibly serve a new generation of investors who are younger, more diverse, and digitally native. This means offering flexible platforms and access to both traditional and digital assets. It may also mean offering effective, and transparent cutting-edge tools.

Just as importantly, the sector must prioritise clear, accessible education around the risks and rewards of innovation. That’s essential for sustainably supporting the next wave of investors, and for maintaining trust in a changing financial landscape.

All opinions, news, research, analysis, prices or other information is provided as general market commentary and not as investment advice and all potential results discussed are not guaranteed to be achieved. The information may have been derived from publicly available sources, company reports, personal research, or surveys. Past performance is not indicative of future performance. Trading carries risk of capital loss. Service available to professional clients only.