This week Tim Hockey the chief executive officer of the large brokerage firm, TD Ameritrade, revealed that his company is seeing a “huge uptick” in investments from millennials tied to cryptocurrencies and cannabis.
Millennials Are Investing a Great Deal In Cannabis and Cryptocurrency
Millenials are now the biggest investor demographic in the world, and according to the stock brokerage firm TD Ameritrade this group is investing heavily in cryptocurrency and reefer-related businesses with tradable shares. Just recently news.Bitcoin.com reported on TD Ameritrade offering its customers access to Cboe’s bitcoin-based futures product. The company revealed on December 18 that Cboe’s bitcoin derivatives launch had “adequate liquidity” and it was more comfortable with listing the product. TD also offers a variety of publicly traded shares of other types of digital currency and blockchain-based ventures.
During a recent interview Hockey explains there’s been a lot of younger investors these days mostly millennials. Hockey says the firm’s distribution strategy focuses on technology and other significant trends that are appealing to this demographic.
“It seems to be working because our new accounts opened by millennials are up 72% year-over-year, and that’s driven by both our offerings as well as what’s of interest in the marketplace right now,” explains Hockey.
Clearly, the two biggest stories of the quarter were the sectors of cryptocurrency and cannabis — Those are two sectors that didn’t even exist a few years ago and that has driven the skewing of our new accounts opened to the younger trader and younger investor.
A Little Less Froth In 2018
Hockey says the cryptocurrency market space is still not mature, and the recent excitement during the holidays was rather “frothy.” At the time Hockey said there was a lot of ‘fear of missing out’ (FOMO) and people wanted to participate when it was going up.
“Ever since the pricing has been normalized and there’s been a bit of a correction, then you’ve seen a little bit less froth, if you will, in the market,” notes the TD Ameritrade executive.
We’ve actually seen that in the first few weeks of January, crypto trades – not just the Cboe product, but companies that are related to blockchain – have contributed a couple of points less toward our trading activity.
Hockey says his company will remain focused on the younger generations and the millennial demographics’ investments. Lots of millennials use the Nebraska based TD Ameritrade as its one of the largest brokerage services worldwide allowing individuals and institutions to invest online.
“And what do younger clients need? They love technology, and we’ve got the platforms that are the best out there,” Hockey concludes.
What do you think about millennials investing in cryptocurrency and cannabis investments? Do you think this trend will continue? Let us know in the comments below.
Images via Pixabay, Twitter, and TD Ameritrade.
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