Gen Z Investors Shun Leverage, Favor Long-Term Bets in TradFi

Binance Research has published a new weekly market commentary titled 'Gen Z Perspective Rewrite', examining how Gen Z users behave across three TradFi products.

The report finds that 77% of Gen Z direct-equity accounts are net buyers, with 76% accumulating in bStocks, the highest share of any generation. In contrast, Baby Boomers have a net accumulation rate of 68% in direct equities and 60% in TradFi-Perps.

Gen Z users also tend to avoid leveraged and inverse ETFs, with 88.2% of TradFi-Perps accounts and 98.9% of bStocks accounts recording no such activity. However, the report notes that Gen Z is rotating into unleveraged ETFs, with the ETF share of equity volume rising from 14.6% in June to 25.0% in early August.

The average Gen Z account trades 13 times a month in TradFi-Perps, compared to 17 for Millennials and 19 for Baby Boomers. Only 1% of Gen Z bStocks accounts fall into the high-frequency bucket, roughly a third of the Millennial rate.