Gen Z Flocks to ETFs as They Reenter Crypto Market with Measured Approach

Gen Z investors have returned to the cryptocurrency market with a measured approach, according to a recent research report by pseudonymous market player Ali Charts. The study found that 22% of their direct-equity accounts have only ever bought (never sold) and they exhibit high net-buyer rates across tokenized stocks, direct equities, and TradFi perpetuals.

The research revealed that Gen Z's risk appetite is more restrained than Millennials', with less frequent use of leveraged and inverse products. They are also biased towards Exchange Traded Funds (ETFs), which have become their preferred vehicle. In July, unleveraged ETFs rose to 21.9% of their net equity inflows, while single-stock demand fell.

ETF-linked perpetuals have emerged as one of the fastest-growing trading categories in 2026, with cumulative volume surpassing $116 billion and accounting for 19% of all TradFi perpetual volume in July. The most heavily traded ETF perpetuals are SOXL ($41.97 billion), KORU ($16.15 billion), EWY ($8.43 billion), QQQ ($5.94 billion), and SPY ($1.71 billion).

The research also observed that Binance's KORU perpetual trading volume reached 148% of the underlying ETF's own volume, indicating that ETF perpetuals are starting to compete with conventional ETF markets for trading activity in certain niches.