[DigitalToday reporter Yoonseo Lee] Gen Z is rapidly increasing its allocation to exchange-traded funds (ETFs) over individual listings on Binance, while trading frequency and leverage use are lower than for other age groups.

Cointelegraph, a blockchain media outlet, reported on Aug. 14 (local time) that Binance Research said ETFs accounted for 25 percent of Gen Z’s stock-related trades as of early August.

The analysis compared Gen Z accounts with millennials, Generation X and baby boomers across spot stocks, tokenised stocks and traditional finance perpetual futures markets. Key comparison items included trading frequency, net inflows and leverage use.

The share of ETFs in Gen Z stock funds rose to 21.9 percent in July from 18.5 percent in June. Over the same period, the share of individual stocks fell to 74.2 percent from 77 percent. Binance analysed that Gen Z is gradually increasing the portion allocated to ETFs in stock investing.

Trading behaviour was relatively cautious. Gen Z traded less frequently than other working-age groups across all three product categories. In traditional finance perpetual futures, the monthly average number of trades was 13 for Gen Z, below 17 for millennials and 16.5 for Generation X.

A tendency to prefer holding over selling also emerged. Among spot stock trading accounts, the share that had never sold was 22 percent for Gen Z, higher than 19 percent for Generation X and 9 percent for baby boomers. The share of accounts that only bought was highest among millennials at 30 percent. The most purchased assets in Gen Z buy-only accounts were Broadcom, Tesla and the Schwab U.S. Dividend Equity ETF.

Use of high-risk products was also low. Among traditional finance perpetual futures accounts, the share that had never traded leveraged or inverse ETFs was highest for Gen Z at 88.2 percent. The share was 84.5 percent for millennials and 85.9 percent for Generation X.

Binance said, however, it was too early to conclude that the results reflect a long-term shift in investment preferences. Spot stock trading products only grew to a meaningful scale in June, leaving only around two months of data available for analysis.

The trend is also tied to growth in the tokenised stock market. Binance’s bStocks, less than two months after launch, briefly rose to No. 2 in tokenised stock issuance last week, overtaking Kraken’s xStocks. Token Terminal said that as of last Tuesday, the value of tokenised stocks in bStocks was $610.6 million, surpassing $601.2 million for xStocks.

The rankings reversed again on Friday of the same week. xStocks was tallied at $610.7 million and bStocks at $579.6 million. In the overall market of about $2.7 billion, their market shares were 22.3 percent and 21.2 percent, respectively. Ondo Finance maintained its position as the largest issuer at $971.8 million.

The tokenised stock market itself continues to grow. RWA.xyz said the market was worth $2.43 billion as of Friday, up about 5 percent over the past 30 days. Attention is focused on what investment flows may follow from Gen Z’s ETF preference and low leverage use in a growing tokenised stock market.

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