Millennials are the ones that have been fueling bitcoin growth all these years, who are burned by the banks. As we reported, 51% of millennials trust bitcoin over big banks.
This generation is the one that has lived through multiple recessions and they are the ones who are anticipated to inherit more than $68 trillion from their Baby Boomer parents by the end of this decade.
But Baby Boomers aren’t limited to just knowing about bitcoin anymore, they are actually investing in the digital currency.
“We've seen a lot of growth this year from both Boomers and Millennials,” said Alex Leishman, co-founder and CEO of River Financial Inc., a startup Bitcoin financial services firm.
Fed’s the Inspiration
According to the San Francisco-based firm, its number of clients has doubled every month this year, which was fueled by “Bitcoin Boomers,” new crypto investors over the age of 55. Since March, they accounted for 77% of River Financial’s volume growth.
Its average monthly volume increased 80% this year, which in part is led by Federal Reserve’s asset purchase policy, the firm said.
“The surging activity we’ve seen since the beginning of 2020 has been in part inspired by the Federal Reserve’s unprecedented monetary intervention,” said Leishman, a former aerospace engineer who was also a teaching assistant for Stanford University’s first cryptocurrency class.
Bitcoin is becoming more accepted after macro investor Paul Tudor Jones shared last month that he has 1 to 2% of his assets in bitcoin.
The company exclusively deals in Bitcoin and has now a private client service for investors who want to purchase up to $250 million worth of BTC.
Traditional Finance Meet Bitcoin
The company announced that it had raised $5.7 million from investors including Slow Ventures, Polychain Capital, Castle Island Ventures, DG Lab Fund, and individual investors.
“The evolution of finance is only happening faster in the wake of the current global economic crisis,” said Olaf Carlson-Wee, Polychain Capital founder. “We see River Financial as bridging the gap between traditional finance and Bitcoin.”
The company which now has licenses to operate in 10 states, plans to further offer standard checking and savings accounts in the coming year in partnership with a chartered bank.
According to Leishman, while Coinbase and Grayscale cater to those with the trading mentality, they do not provide the kind of customer service not the older and wealthy investors seek. River Financials provides services that one would get at a bank and assigns a private adviser to its investors as well.
Leishman says it doesn’t charge a fee to store customers’ bitcoin and customers treat the service as a savings bank with deposits, bitcoin purchase, accounting for 97% of company’s transactions.
River’s advisers include Elizabeth Stark of Lightning Labs and Steve Lee of Square Crypto.