Grayscale: The size of global alternative assets has grown nearly sevenfold since 2008, and the younger generation's allocation preferences favor crypto

In comparison, Grayscale research director Zach Pandl wrote that the global alternative asset market has grown nearly sevenfold since the 2008 financial crisis, and the share of private equity, private credit, hedge funds, physical assets, and crypto in the global investment portfolio continues to rise. According to its quoted data, within alternative assets, private equity accounts for about 29%, hedge funds about 23%, and crypto accounts for about 13%.

According to Zach Pandl, differences in configuration preferences between generations may further reinforce this trend. According to Bank of America's survey of high-net-worth individuals, investors aged 21 to 43 allocate about 53% of their assets outside of traditional equity bonds, compared to 26% of those aged 44 and over. As more than $100 trillion of wealth is expected to be transferred to the younger generation over the next few years, its stronger preference for alternative assets is likely to bring continued tailwind to crypto.

He added that the lower entry threshold for alternative assets is one of the reasons for this shift. Crypto is also developing along a similar path, and regulated products such as Bitcoin ETP and institutional market infrastructure provide a more convenient way to gain exposure.