A quiet investing reset is underway: younger investors in the United States are treating stocks as just one ingredient, not the whole meal.

Crypto and alternative assets are taking up far more space in their portfolios than older generations typically allow. A new survey of affluent households highlights the split, and it hints at how future wealth may be invested.

New Divide

A Bank of America Private Bank study, based on an online survey conducted by an independent market-research firm, reports a sharp generational gap in asset allocation. Respondents ages 44 and up held about 55% in stocks, 5% in alternatives, and 1% in crypto. Those ages 21 to 43 held roughly 28% in stocks, 17% in alternatives, and 14% in crypto.

Portfolio Mix

The data suggests younger investors are drifting away from classic “set-and-forget” frameworks such as a 60/40 mix of stocks and bonds. Instead, many are spreading exposure across real estate, private-market strategies, collectibles, and digital assets. Older investors still favor traditional public equities and bonds, with alternatives and crypto typically occupying only small slices.

Doubt Factor

Skepticism appears to be a major driver. In the report, 72% of younger respondents said they remain doubtful about traditional investments, and 75% said it’s no longer possible to achieve above-average returns with only stocks and bonds. Among Gen X and older groups, only about a quarter shared that view, highlighting a real confidence gap.

A Practical Lens

Harry Markowitz, an economist, said that spreading investments across assets with different risk-and-return profiles can reduce overall portfolio risk without necessarily sacrificing expected returns. That principle helps explain why many investors treat crypto and alternatives as additions to a broader mix—not automatic replacements for a diversified core.

Crypto Pull

Crypto’s rise is recent, but it has reshaped how risk is discussed. Bitcoin launched in 2009, and Ethereum followed in 2015, giving investors new tools to speculate, transact, and trade digital ownership. For younger investors raised on apps and instant settlement, crypto can feel like a natural extension of online finance rather than a fringe experiment.

Alt Boom

Alternative assets are not new, but access to them has changed. Art and rare collectibles have traded through major auction houses for centuries, yet investing in those markets was once limited to the very wealthy. Over the past decade, platforms and structured offerings have made it easier for individuals to buy fractional exposure, turning once-exclusive assets into shareable investments.

Access Shift

A key accelerator was legislation passed in 2012 that pushed regulators to expand defined fundraising exemptions for smaller offerings. One widely used pathway, Regulation A and its expanded format, allows certain offerings with lighter requirements than a full public registration, while still involving review and ongoing compliance standards.

Fractional Deals

That broader access helped fuel “sliced ownership” of assets that were previously hard to buy, store, or resell. Investors can now see offerings tied to fine art, sports memorabilia, luxury collectibles, early-edition books, crowdfunded real estate, and other niche items. The pitch is simple: own a piece of something scarce without buying the whole item.

Private Equity

Private equity has also become more visible to individuals through regulated crowdfunding structures and packaged funds. It remains a heavyweight in the alternatives universe. McKinsey reported that private equity assets under management reached about $1.5 trillion in 2023, an 18% increase from the year before. That growth helps explain why younger investors keep hearing about the category.

Reality Check

Even with eye-catching allocations, it’s risky to treat this study as a snapshot of “typical” investing. The report represents adults with $3 million or more in investable assets, a group with very different options, risk capacity, and access. For comparison, a Federal Reserve Bank analysis using Survey of Consumer Finances data cites a median household wealth level of $162,350.

Sample Limits

The survey included 1,007 participants, and the youngest segment was relatively small. Respondents age 43 and under accounted for just 13% of those surveyed, while ages 44 and older made up the bulk. That doesn’t invalidate the trend, but it does mean the results describe a narrow slice of wealthy households, not a broad national average.

Smart Guardrails

For investors intrigued by crypto and alternatives, the practical issue is position sizing and liquidity. Many alternatives have higher fees, limited price transparency, and restrictions on selling quickly. Crypto can swing sharply in short windows. A disciplined approach typically starts with a diversified core, then adds smaller “satellite” allocations that won’t derail goals if values drop.

Conclusion

Younger wealthy investors appear to be rebalancing away from stock-heavy portfolios and toward a broader blend that includes crypto and alternatives. Yet the headline needs context: the data reflects high-asset households and a small younger sample. Diversification can be smart, but it works best when investors match each position to their true time horizon, cash needs, and tolerance for volatility.