Gen Z Flocks to Binance ETFs, Trading Less and Holding Longer

Gen Z investors are increasingly turning to exchange-traded funds (ETFs) on Binance, with ETFs making up 25% of their equity volume in early August. This shift is evident in net capital flows, where unleveraged ETFs captured 21.9% of Gen Z's net equity inflows in July, compared to 18.5% the previous month.

Gen Z investors are trading less and holding positions longer than other age groups, with an average of 13 monthly TradFi perpetual trades. They also held between 1.4 and 1.6 ETF symbols on average, with positions staying open for around 10-14 days.

About 22% of Gen Z direct-equity accounts have never placed a sell order, with popular buy-only holdings including the Schwab U.S. Dividend Equity ETF (SCHD), Broadcom, and Tesla. The use of leveraged and inverse ETFs is relatively low among Gen Z investors, representing only 9.25% of their direct-equity turnover in July.

Binance's tokenized U.S. equity products reached $100 million in assets under management within two weeks of being introduced, with about 47% of trading activity occurring outside regular U.S. market hours.