From crypto to collectibles, what younger investors are betting on, and why it matters.
Introduction: Rethinking the Rules, Rewriting Wealth
Introduction: Rewriting the Rules, Rethinking Wealth
For many years, investing was primarily associated with stocks, bonds, and possibly some real estate. However, that story is being rewritten by Millennials and Gen Z, who are influenced by inflation concerns, economic upheaval, and digital native behaviours.
They’re not just investing differently, they’re redefining what “wealth” even looks like. Enter: alternative assets.
From NFTs to sneakers, digital art to farmland, these younger generations are building diverse, unconventional portfolios and they’re doing it on their terms.
Why Are Young Investors Shifting?
Here’s what’s driving the rise of alt-investing:
- Distrust in traditional institutions:
After living through the 2008 financial crisis and witnessing events like the Silicon Valley Bank collapse, younger investors are skeptical of the stock market’s “safe haven” status. - Digital-native behavior:
Raised on apps and algorithms, Gen Z and Millennials are more comfortable using platforms like Coinbase, OpenSea, and Rally Rd. than traditional brokerages. - Desire for ownership and expression:
For many, assets are about identity. Collectibles and crypto aren’t just investments, they’re part of a lifestyle. - Low barriers to entry:
Fractional ownership and investing apps allow users to buy tiny pieces of art, real estate, or rare collectibles with just a few bucks.
What Exactly Are They Investing In?
Let’s break it down:
1. Cryptocurrency
The original alt-investment for this generation. While volatility remains high, Bitcoin and Ethereum still dominate portfolios, especially as hedges against inflation and centralized control.
Why it matters: Crypto represents control, decentralization, and tech-forward innovation.
2. NFTs and Digital Art
Though the NFT market has cooled post-2021 boom, Gen Z still sees value in digital collectibles, from art to PFPs to gaming assets.
Why it matters: These are status symbols and cultural assets, not just investment vehicles.
3. Collectibles
Think: Pokémon cards, comic books, luxury watches, vinyl records, even Funko Pops. Platforms now enable tracking, grading, and trading of physical items as legitimate assets.
Why it matters: Tangible, nostalgic, and often yield higher returns than the S&P 500 if chosen wisely.
4. Sneakers and Streetwear
Limited-edition Nikes or Supreme drops aren’t just fashion, they’re liquid assets. With apps like StockX or GOAT, reselling is a multibillion-dollar business.
Why it matters: Combines passion with profit; investing in culture.
5. Fractional Real Estate
From REIT apps to co-investment platforms, younger investors are putting money into homes and properties without buying entire buildings.
Why it matters: Democratizing real estate ownership with low initial capital.
6. Farmland and Wine
Platforms like AcreTrader and Vinovest allow users to invest in farmland or fine wine, niche but historically high-performing assets.
Why it matters: Stable, inflation-resistant, and totally off Wall Street’s radar.
7. Private Equity and Startups (via crowdfunding)
With the rise of regulation crowdfunding (Reg CF), retail investors can back early-stage startups, something previously limited to venture capitalists.
Why it matters: Gives everyday investors a chance to spot the “next big thing” before it goes public.
The Psychology Behind the Shift
- Financial survival meets self-expression:
Investing is no longer just about retirement. It’s about alignment, with beliefs, trends, and communities. - FOMO and social investing:
TikTok, Reddit, and YouTube have created viral investing moments, from meme stocks to Dogecoin. It’s not just about the asset, it’s about the hype, the story, the tribe. - Values-based investing:
Climate-friendly startups, sustainable fashion, or decentralized finance (DeFi) appeal to a generation that cares deeply about ethics and social impact.
The Bigger Picture: Why This Matters
- Traditional finance must evolve or risk becoming irrelevant.
Gen Z and Millennials are bypassing legacy banks and embracing fintech solutions, and it’s forcing Wall Street to take notice. - Risk profiles are changing.
Younger investors aren’t afraid of volatility if the reward and cultural value are high. - New asset classes are here to stay.
Whether the SEC likes it or not, NFTs, crypto, and collectibles are becoming permanent parts of portfolios.
Final Take: It’s Not “Unconventional”, It’s the New Normal
What used to be fringe is now foundational.
For Millennials and Gen Z, alternative assets aren’t a “side bet”, they’re the future of investing. It’s less about spreadsheets and more about stories. Less about Wall Street, more about ownership.
And as platforms evolve, access expands, and values shift, expect this trend to go from niche to mainstream, fast.
