More Than Two-Thirds Of Americans Believe They Need Alternative Assets Like Crypto To Boost Their Portfolios, According To Schwab

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More than two-thirds of Americans believe they need more than stocks and real estate to generate higher returns, according to Charles Schwab’s (NYSE:SCHW) 2025 Modern Wealth Survey. More Americans feel the need to accumulate alternative assets like cryptocurrencies instead of relying exclusively on traditional assets.

The findings come as Bitcoin continues to outperform the S&P 500. Bitcoin’s 19% year-to-date gain exceeds the S&P 500’s 15% gain during the same period. The more you zoom out, the more Bitcoin crushes the S&P 500.

The flow of capital toward alternative investments can create buying opportunities and allow investors to determine the sentiment of market participants.

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The crypto boom has attracted many investors, who are now jumping on the bandwagon. Roughly 40% of Americans view crypto as a good investment, according to the survey. Meanwhile, 65% of crypto investors included in the survey said that they plan to increase their holdings.

High returns will attract investors, and the increased accessibility of crypto has made it easier for people to participate. You no longer have to open a crypto wallet and remember your unique code. Many financial institutions have launched crypto ETFs that let you follow the price movements of popular cryptocurrencies.

Crypto buying also comes at a time as President Donald Trump has enacted crypto-friendly policies and has even released his own memecoin. Trump‘s approval of cryptocurrencies has contributed to the boom, based on Bitcoin and other digital assets rallying after he won the presidency last year.

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Cryptocurrencies have become a fan-favorite, but they aren’t the only alternative assets people are piling their capital into. Nearly half of American investors are interested in private equity, hedge funds, and venture capital, according to the survey.

These alternative assets can outperform stocks but come with more risks, such as less liquidity. These assets may force investors to be more patient since they aren’t as liquid, and that may not be a problem.

More than 60% of investors say that a greater long-term discipline is essential in this market, according to the survey. Almost 70% of those same investors say that they have become more patient than when they first started investing in assets.

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The 60/40 Rule is a longstanding rule that asserts investors should put 60% of their capital into stocks and 40% of it into bonds. However, 42% of American investors believe that the rule is outdated, according to the survey.

The distaste for this rule is higher among younger investors. While 46% of Gen Z believe the 60/40 rule is outdated, only 35% of boomers believe the same. This difference may be due to the fact that many boomers are retired and want the stability of fixed income to fund their final years. Gen Z has more time to recover from losses and needs strong, long-term portfolio gains to reach key financial goals.

Younger investors are more likely to take risks due to their extended time horizons, which is part of the reason why more of them see the 60/40 rule as outdated. Instead of stocks and bonds, investors are looking deeper into alternative assets to generate higher returns, with stability and fixed-income as afterthoughts.

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This article More Than Two-Thirds Of Americans Believe They Need Alternative Assets Like Crypto To Boost Their Portfolios, According To Schwab originally appeared on Benzinga.com