Gen Z Favors ETFs, Trades Less Than Older Cohorts on Binance
Gen Z traders on Binance are increasingly favoring exchange-traded funds (ETFs), accounting for 25% of their trading volume in early August, according to a report from Binance Research. This trend is part of a broader shift in investment habits among young investors, who are also showing a preference for more conservative approaches.
The analysis compared Gen Z accounts with those of Millennials, Gen X, and Baby Boomers across various metrics, including trading frequency, net flows, and leverage use. The results show that Gen Z traders averaged 13 monthly trades in TradFi perpetuals, significantly lower than the 17 trades per month for Millennials and 16.5 for Gen X.
The report also highlights a notable lack of appetite among Gen Z investors for leveraged and inverse ETFs, with 88.2% of TradFi perpetual accounts recording no activity in these products. This is in contrast to other generations, where the use of such products was more prevalent.