Millennials and Gen Z want NFTs

More than half of millennials and nearly three-quarters of Generation Z are considering the inclusion of non-fungible tokens (NFTs) into their portfolio mix, according to the survey by deVere Group.

NFT was described as a digital asset, such an image, audio clip or GIF, whose ownership was recorded on a tamper-proof digital ledger known as a blockchain.

DeVere said that this merging asset class took off in “considerable way” last year, with a digital-only piece of art selling for $69 million, with an increasing number of fashion, music, tech and sports brands creating, buying and selling NFTs.

“The findings of this poll underscore that digital natives – those who have grown-up immersed in a fully accessible digital life – understand that unique, highly portable and transferable digital assets have an intrinsic value and that this is a trend that will inevitably grow moving forward,” deVere CEO and founder Nigel Green, said.

“Clearly, this groundswell of digital engagement is creating new business models across many sectors.

“Sensibly, younger generations – who instinctively better understand it – appreciate that, therefore, it’s going to shape the future of investing. They’re keen to have a stakeholding in this new financial ecosystem by including NFTs in their portfolios.”

Green said he expected this could be a sound strategy, not only because NFTs were likely to be an intrinsic component of the global digital architecture of the future, but also because this “hot new asset class” could act as a major diversifier in investment portfolios.

He stressed that proper diversification of a portfolio across asset class, sector, region, and currency was the best way an investor can best position themselves to mitigate risks and to seize opportunities when they were presented.

“NFTs have a very low correlation to other assets, such as stocks and bonds, and can, therefore, lower your portfolio’s overall risk and volatility levels.”