NEIRIN GRAY DESAI CONSUMER REPORTER FOR DAILYMAIL.COM
Baby boomers are investing their savings in Bitcoin – driving the value of the cryptocurrency to its highest level in more than two years.
Younger Americans have been able to buy Bitcoin for years using smartphone apps like Robinhood and Cash App.
But last month’s ETF approval made it much more accessible to the less tech savvy generation, born between 1946 and 1964 and aged between 60 and 78.
Bitcoin ETFs track the crypto’s price but can be bought and sold on traditional stock exchanges like shares and other funds.
They mean retirement savers can now take a position in Bitcoin by rolling those ETFs into their 401(k)s or buying them through old school brokerages like Schwab.
The value of Bitcoin, the flagship cryptocurrency, has increased by more than 20 percent over the last month to more than $51,000. That is under $20,000 shy of its all-time high of around $69,000.
And since the SEC approval on January 11, the ten or so ETFs on the market have attracted a net inflow of $5.2 billion so far, according to Bloomberg.
‘I don’t think that’s going to stop,’ Michael Novogratz, CEO of crypto investment firm Galaxy Investment Partners, told CNBC on Wednesday.
‘Baby boomers own most of the wealth in America and they’re getting their first easy access to Bitcoin and you’re seeing it through these ETFs,’ he said. Boomers own 51 percent of US wealth, according to the Federal Reserve.
He predicted that within six months double the number of financial advisors will be able to recommend Bitcoin products to their customers. And those investments are made for the long-term, he said.
After federal regulators approved the trading of Bitcoin ETFs last month, older Americans became prime targets for investment firms looking to grow their funds.
Through slick adverts and financial planners, Bitcoin has been presented as a futuristic asset immune to government intervention, similar to gold, which can deliver returns in the long run.
‘Gold hasn’t had a great run, partly because of Bitcoin substitution,’ said Novogratz.
Investment firms VanEck, Bitwise, Wisdom Tree and Grayscale spent approximately $300,000 on TV spots aired during financial segments between January 11 and January 30, the Wall Street Journal reported.