Gen Z more secure with crypto than homes

Melody Chen

Hong Kong's Generation Z is leaning more toward cryptocurrencies than property, a survey shows.

The Futu Securities survey of over 2,000 residents who use its platform found 23 percent of Gen Zers say they would feel more secure with just two bitcoins in their portfolio versus 17 percent who have HK$1 million for a down payment on a home in the city.

Virtual assets have outshone home prices in the city with bitcoin rising 125 percent in 2024.

Bitcoin broke the US$100,000 (HK$780,000) barrier on December 12 and currently stands at around US$97,000 apiece.

The survey also uncovered a growing optimism toward the virtual asset class.

Hong Kong residents rate financial security at 6.43 out of 10, amid widespread concerns about economic uncertainty.

They are more inclined to boost investments to generate passive income rather than rely on cost-cutting, side jobs or career changes to navigate economic challenges.

Over half see this as a way to enhance financial security, followed by 41 percent who favor diversifying assets to mitigate risks.

High earners with an annual salary exceeding HK$1 million adopt a diverse and aggressive investment approach, with a quarter having more than five income streams and 34 percent investing over half their income. They prefer high-volatility assets such as futures, options, foreign exchange and cryptocurrencies.

Over 42 percent have invested in cryptocurrencies, and among them, 66 percent have made a profit.

The survey indicates 87 percent of high earners plan to maintain or increase their investment allocation, with stocks, cryptocurrencies, and funds being their top three asset choices for expansion.

Cryptocurrencies are also gradually becoming a preferred asset allocation choice, especially for the younger generation.

Around 45 percent of Gen Zers, born between 1997 and 2012, places more importance on the convenience and security of cryptocurrency investments, believing they provide greater financial security than purchasing property.

This group is three times more optimistic about the future of virtual assets than real estate.

Around 77 percent of cryptocurrency investors from Gen X, born between 1965 and 1980 or earlier, are also optimistic, particularly about bitcoin's long-term appreciation potential.

In Hong Kong, the Securities and Futures Commission has issued licenses to seven virtual asset trading platforms, with another 11 institutions applying for licenses. Authorized local financial institutions including Futu Securities also offer cryptocurrency trading services to retail investors.