What Do Young Investors Think About Crypto ETFs?

12 Pages Posted: 28 Jan 2024

See all articles by Mahnaz Paydarzarnaghi

Mahnaz Paydarzarnaghi

University of Texas at Arlington

Nima Vafai

University of Texas of the Permian Basin

David A. Rakowski

University of Texas at Arlington

Date Written: January 11, 2024

Abstract

This letter examines potential demand for crypto ETFs, focusing on investors’ age. Data are obtained from a survey of potential investors in a US college community and supplemented by an analysis of the discourse around crypto ETFs on the Reddit social media platform. The results suggest that young investors are more aware of crypto ETFs than old investors. However, trading intentions for crypto ETFs are driven by risk tolerance, which is not related to age. Discussions about crypto ETFs on social media suggest that young investors actively participate in discussions about potential SEC approval of US-listed crypto ETFs. Despite being more aware of crypto ETFs, we find only weak evidence that young investors intend to trade crypto ETFs more than older investors.

Keywords: Cryptocurrency Exchange-Traded Funds; bitcoin ETF; SEC approval; social media; Reddit; investor demand; investor demographics; investor age; Crypto ETFs; cryptocurrency; crypto; ETFs; young investors; bitcoin.

JEL Classification: G11, G41

Suggested Citation

Paydarzarnaghi, Mahnaz and Vafai, Nima and Rakowski, David A., What Do Young Investors Think About Crypto ETFs? (January 11, 2024). Available at SSRN: https://ssrn.com/abstract=4691094 or http://dx.doi.org/10.2139/ssrn.4691094

Mahnaz Paydarzarnaghi (Contact Author)

University of Texas at Arlington ( email )

701 S. Nedderman Drive,
Arlington, TX 76019
United States

HOME PAGE: http://www.mahnazpaydar.com

Nima Vafai

University of Texas of the Permian Basin ( email )

4901 East University
Odessa, TX 79762
United States

David A. Rakowski

University of Texas at Arlington ( email )

Box 19449 UTA
Arlington, TX 76019
United States

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