Binance’s Gen Z traders are allocating an increasing portion of their equity activity to exchange-traded funds (ETFs), with the products accounting for 25% of the cohort’s trading volume in early August, according to Binance Research.
ETFs accounted for 21.9% of Z net equity inflows in July, up from 18.5% in June, while the share going to individual stocks fell from 77% to 74.2%.
D Analysis Activity across direct equity, tokenized stocks and traditional finance perpetuals was examined, comparing Gen Z accounts with Millennials, Gen X and Baby Boomers on metrics including trading frequency, net flow and leverage use.
The younger cohort transacts less frequently than other working generations across all three products. Gen Z averaged 13 monthly trades perpetuated, compared to 17 for Millennials and 16.5 for Gen X.
Among Gen Z direct-equity accounts, 22% have never placed a sell order, compared to 19% of Gen X accounts and 9% of Baby Boomer accounts. Millennials had the highest share of buy-only accounts at 30%. According to Binance, accounts that only buy Z include the Broadcom, Tesla and Schwab US Dividend Equity ETFs.
Net buyers by generation and product. Source: Binance
Gen Z has also shown relatively little appetite for leveraged and inverse ETFs; 88.2% of Gen Z TradFi perpetual accounts recorded no activity on these products, compared to 84.5% of Millennials and 85.9% of Gen X.
Binance warned that its direct-equity product only reached meaningful scale in June, leaving a relatively small data window to establish long-term trends.
Related: Binance to limit transactions involving HTX, 10 other crypto platforms
Binance bStocks briefly outperformed xStocks
Binance’s bStocks briefly overtook Kraken’s xStocks as the second-largest tokenized stock issuer this week, less than two months after launch. As of Tuesday, bStocks had $610.6 million in tokenized stock value, compared to $601.2 million for xStocks, according to Token Terminal data.
The positions were reversed by Friday, with token terminals xStocks showing $610.7 million and bStocks $579.6 million, representing 22.3% and 21.2% respectively of the roughly $2.7 billion market. Ondo Finance remained the largest issuer at $971.8 million.
The broader tokenized stock market continues to expand with RWA.xyz Tracking $2.43 billion in value delivered as of Friday, up nearly 5% over the past 30 days.
Tokenized stock market cap by issuer. Source: Token terminal
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