Nearly Half of ETF Investors Eye Crypto ETFs—Schwab Survey Reveals Surging Demand
Wall Street's love affair with crypto just hit a new milestone. According to Schwab's latest data, 45% of ETF investors are ready to dive into crypto ETFs—proof that digital assets are no longer the fringe plaything of tech bros.
Why the rush? Institutional FOMO meets regulatory green lights. TradFi's slow dance with decentralization might finally be picking up tempo.
But let's be real: when legacy finance 'innovates,' it's usually just repackaging old wine in blockchain-shaped bottles. Still, money talks—and right now, it's screaming 'HODL.'
Nearly half of ETF investors eye crypto funds
Eric Balchunas, a senior ETF analyst at Bloomberg, noted that the survey results are shocking due to the disparity between investor interest and the current size of the ETF market.
“This was also shocking to see crypto tied with bonds for second place in where people plan to invest. Majorly punching above its weight, given that crypto is 1% of total ETF AUM, while bonds are 17%. EM better than their assets too vs dev int’l and alts uninspiring to people still.”
–Eric Balchunas, Bloomberg ETF Analyst
Balchunas believes the results were too optimistic for the ETF industry, as most investors surveyed indicated that they plan to increase ETF holdings in 2026.
According to the Schwab survey, 2,000 investors aged between 25 and 75 responded to the study, each with approximately $25,000 in investible assets. Schwab noted that half of the respondents had already traded ETFs for more than two years.
There is also a clear generational divide in interest toward crypto ETFs, with Millennials (born between 1981 and 1996) showing the strongest appetite for them. At least 44% of Millennials indicated that they plan to invest in spot crypto ETFs.
Gen X investors (born between 1965 and 1980) had a 33% interest, and baby boomers (born between 1946 and 1964) had an 11% interest in investing in crypto ETFs.
According to a 2024 Schwab report, at least 91% of investors indicated that investing in ETFs was necessary to boost their portfolios. This occurred before the launch of ETFs in the U.S., indicating a growing demand for crypto ETFs. The reports also highlighted that young investors are taking the stage in crypto-related investments, adopting diversification strategies.
According to the asset manager’s 2025 report, cost efficiency and accessibility are the key motivators for investors favoring ETFs. The report showed that 94% of respondents confirmed ETFs have lower investment costs. Approximately 50% of the respondents also stated that ETFs enable access to specialized strategies beyond their Core portfolios.
Investors prioritized liquidity, provider reputation, and trading volumes as key factors before entering an investment.
Millennials drive the rising demand for crypto ETFs towards 2026
David Botset, Managing Director and Head of Strategy, Innovation, and Stewardship at Schwab Asset Management, noted that the world of investing is undergoing a rapid shift as individual investors gain access to new asset classes and investment strategies. He added that ETF investors are at the forefront of the evolving market.
To date, crypto ETFs account for approximately 1% of the total ETF assets under management. The bond market ETFs represent approximately 17% of the market, having climbed NEAR the $2 trillion mark by mid-June this year, according to a study. The analysis also revealed that fixed-income ETFs have held over $2.7 trillion to date.
Based on SoSoValue data, U.S. crypto ETFs hold roughly $157 billion in assets under management (AUM), with spot Bitcoin ETFs leading the chart with $135.43 billion. ethereum ETFs have $21.75 billion in assets under management (AUM), while Solana ETFs have $538 million in AUM.
Schwab’s research noted that Millennials are driving growth by using ETFs for CORE allocations, while also experimenting with other emerging markets, alternative assets, and digital innovations.
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