A new report from Schwab Asset Management reveals a striking shift in investor interest: crypto ETFs are now matching bond ETFs in popularity among exchange-traded fund investors. Bloomberg ETF analyst Eric Balchunas called the findings “shocking,” noting how crypto ETFs are rapidly gaining traction despite representing a tiny share of the overall ETF market.
Growing Interest in Crypto ETFs Rivals Bond Funds
According to Schwab’s latest ETFs and Beyond report, 52% of surveyed investors plan to buy a US equities ETF—still the top choice. But the most notable result comes next: 45% said they intend to purchase a crypto ETF, matching the number of respondents who said they’d buy a bond ETF.
Balchunas highlighted the significance of this trend, pointing out that crypto ETFs currently make up only around 1% of total ETF assets under management, compared to 17% for bond ETFs. Despite this massive difference in market size, investor demand appears evenly matched.
Millennials Lead the Charge Into Crypto ETF Investing
The report shows clear demographic differences in crypto ETF interest. Millennials—those born between 1981 and 1996—are the most eager group. About 57% of Millennial respondents said they plan to invest in crypto through ETFs.
Gen X investors, born between 1965 and 1980, showed lower but still notable interest at 41%. Baby boomers were the least inclined, with just 15% considering crypto ETF exposure.
Balchunas said the survey results paint a “super-optimistic” picture for ETFs overall, noting that most age groups expect to increase their use of ETFs in the coming years.
Accessibility and Low Costs Fuel ETF Adoption
Schwab’s report highlights the key reasons behind broader ETF adoption. A dominant 94% of respondents agreed that ETFs help reduce investment costs—one of the strongest selling points for ETFs compared to traditional mutual funds.
Nearly half also said ETFs give them access to niche strategies and asset classes that would be harder to reach through other investment vehicles. This growing accessibility is helping drive interest in emerging sectors such as digital assets, blockchain technology, and crypto-linked investment products.
Investors Embrace a Rapidly Evolving Market
David Botset, managing director at Schwab Asset Management, emphasized that the investment landscape is transforming quickly. Individual investors now have access to a broader mix of asset classes and strategies, and ETFs remain at the forefront of this shift.
He noted that ETFs in the US now outnumber individual stocks, underscoring how essential they’ve become for both core holdings and more targeted investing.
The New Reality: Crypto ETFs Are No Longer Niche
With crypto ETFs tying bond ETFs in investor interest, the sector is clearly moving beyond its early-adopter phase. The combination of accessibility, lower fees, and growing mainstream acceptance is positioning crypto ETFs as a significant part of modern portfolio strategies.
For ETF investors—especially Millennials—crypto exposure is shifting from a fringe idea to a mainstream choice, showing how digital assets continue to reshape the future of investing.
