Crypto and 5 Other Groundbreaking Investing Trends for Gen Z

Generation Z is loosely defined as those ages 24 and under. As most of this generation is either just finishing up school or working in their first jobs, they may not have extensive investment portfolios or sizable assets just yet.

But this doesn’t mean that Gen Z isn’t interested in investing. In fact, many Gen Zers who have begun investing are right at the cutting edge when it comes to new market trends and investment themes. Here’s a look at some of the hot investment areas that many Gen Zers are keeping an eye on.

Last updated: Sept. 13, 2021 

Cryptocurrency is the ultimate boom-or-bust investment. Whereas some see cryptocurrencies like Bitcoin as a worthless trifle that will eventually go to zero, a growing contingent of investors view cryptocurrency as a viable substitute for fiat currency. As Gen Z has grown up in an era of growing distrust of governments and traditional institutions, the anonymity, security and freedom offered by cryptocurrencies and the blockchain have enamored a growing number of Gen Z investors.

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For as long as most Gen Zers have been alive, the world has been moving toward more sustainable processes, from an increased emphasis on recycling to the development of alternative fuels and sources of food. This trend is likely to continue as Gen Z ages and supports the likes of companies ranging from electric vehicle maker Tesla to plant-based food producer Beyond Meat.

You couldn’t turn your back in 2020 and 2021 without hearing headlines about so-called “meme stocks” like GameStop and AMC Entertainment. These formerly unloved Wall Street names shot up spectacularly in value thanks to groups of investors on message boards like Reddit piling into them. GameStop, for example, skyrocketed 400% in a single week early in 2021. The meme stock phenomenon is due in large part to the way that younger investors like Gen Zers trade, via zero-commission mobile apps and online platforms that allow rapid trading for little to no cost.

Space has always been “the final frontier,” but it’s more in reach these days than ever before. An entire industry of companies has sprung up promising to deliver civilians to low-Earth orbit, from Jeff Bezos’ Blue Origin to Richard Branson’s Virgin Galactic. The aspirational nature of these companies, in addition to the charisma of their visionary founders, has attracted a large number of followers among Generation Z.

In addition to sustainability, innovation is one of the most popular investing themes among Generation Z. In other words, this younger generation is not only interested in electric vehicles, but also autonomous ones. Surprisingly, this might bode well for traditional automakers, who have followed the lead of innovators like Tesla and begun developing both electric and self-driving vehicles. 

Technological advances have transformed the financial services industry more than almost any other, and Generation Z has been along for the ride. Zero-commission trading has made stock investing easier for all investors, and it has certainly helped fuel the rise of meme stocks. Robo-advisors have allowed Gen Z and other investors to develop long-term investment plans at a low cost without the help of a physical advisor. And crowdfunding and peer-to-peer platforms have provided access to real estate, collectibles and other asset classes that traditionally required high dollar amounts and specific knowledge to participate. All in all, advances in financial technology have broadened the access to investments of all types, a perfect combination for Gen Z investors who may be just starting out with limited investment bankrolls.

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