Crypto ETFs Matching Bond ETFs in Investor Appeal: What Schwab's Data Reveals

A transformative shift is unfolding in how retail investors allocate capital. According to Schwab Asset Management’s latest survey, cryptocurrency exchange-traded funds (ETFs) have achieved parity with traditional bond ETFs in investor interest—a development that upends conventional wisdom about digital asset adoption in mainstream markets.

The numbers tell a striking story. When Schwab polled 2,000 individual investors (ages 25-75, each with at least $25,000 in investable assets), the results defied expectations: 45% of respondents plan to incorporate crypto ETFs into their portfolios, matching the exact same percentage interested in bond ETFs. US equities lead at 52%, but the crypto-bond ETF tie highlights a seismic shift in investor preferences. For context, this is particularly remarkable given the bond market’s vastly larger asset base compared to crypto.

Bloomberg’s senior ETF analyst Eric Balchunas captured the surprise succinctly—that interest in crypto ETFs would rival bond ETFs represented an unexpected development in the investment landscape.

Age Groups Show Diverging Appetite for Digital Assets

The generational breakdown reveals sharper contrasts. Millennials demonstrate the strongest enthusiasm for crypto ETFs, with 57% planning to allocate funds into these vehicles. Generation X follows at 41%, while Baby Boomers lag significantly at just 15%. This age-stratified adoption pattern underscores how digital natives are reshaping portfolio construction, treating crypto not as speculative fringe assets but as legitimate diversification tools alongside traditional bond ETFs.

The data suggests that comfort with blockchain technology directly correlates with willingness to embrace crypto-based ETFs, a trend likely to intensify as younger investors gain greater wealth and decision-making power.

Why ETFs Are Winning: Cost Efficiency and Accessibility

The appeal of ETFs—including both crypto-focused and bond-focused vehicles—hinges on two fundamental advantages. An overwhelming 94% of survey respondents acknowledge that ETFs reduce portfolio expenses, making them attractive for cost-conscious investors. Additionally, half of respondents value ETFs’ capacity to provide exposure to specialized or niche assets beyond traditional markets.

David Botset, Schwab’s managing director, noted that the investment ecosystem is undergoing rapid transformation, with ETFs serving as the primary vehicle for this evolution. This democratization is particularly potent in crypto markets, where ETFs have lowered barriers to entry for retail participants historically excluded from institutional-grade digital asset strategies.

The Broader Implication: Mainstreaming Digital Assets

The convergence of crypto ETF and bond ETF interest signals more than a preference shift—it reflects institutional acceptance of cryptocurrencies as a legitimate asset class. Regulatory clarity and innovation in financial products have enabled this normalization. Younger investors, unencumbered by traditional bias against digital assets, are pioneering a portfolio construction model where crypto ETFs coexist naturally with bond ETFs and equities.

As ETF ecosystems continue expanding and regulatory frameworks crystallize, crypto’s position within mainstream investment portfolios appears increasingly cemented. The Schwab data suggests that digital asset adoption isn’t a fringe phenomenon but a systemic reorientation of how investors think about diversification and growth.