Gen Z traders on Binance have steadily increased their focus on exchange-traded funds (ETFs), with these products representing 25% of Gen Z’s equity trading volume in early August, according to a report from Binance Research.
Generational trends in trading activity
In July, ETFs made up 21.9% of Gen Z net equity inflows, a climb from 18.5% in June. Over the same period, the proportion allocated to individual stocks fell from 77% to 74.2%.
Binance Research compared activity across direct equities, tokenized stocks, and traditional finance (TradFi) perpetual products, measuring trading frequency, net flows, and leverage usage among Gen Z, Millennials, Gen X, and Baby Boomers.
Gen Z participants traded less frequently than Millennials and Gen X across all three product types. The average Gen Z account executed 13 monthly trades in TradFi perpetuals, while Millennials completed 17 and Gen X traders averaged 16.5.
Among Gen Z direct-equity accounts, 22% had never executed a sell order. In comparison, this figure stood at 19% for Gen X and 9% for Baby Boomers. Millennials had the highest proportion of buy-only accounts, at 30%.
Binance identified Broadcom, Tesla, and the Schwab US Dividend Equity ETF as the top cumulative purchases in buy-only Gen Z accounts.
The study also found that Gen Z showed limited interest in leveraged and inverse ETFs. Approximately 88.2% of Gen Z TradFi perpetual accounts registered no trades in these riskier products, compared to 84.5% among Millennials and 85.9% for Gen X.
Binance noted that its direct-equities product only achieved significant scale in June, resulting in a relatively brief data window to establish long-term trends.
Tokenized stocks: Shifting market dynamics
This week, Binance’s bStocks briefly surpassed Kraken’s xStocks as the second-largest issuer of tokenized stocks, according to Token Terminal data. Less than two months after launching, bStocks reached $610.6 million in tokenized stock value, compared to $601.2 million for xStocks as of Tuesday.
By Friday, the positions had reversed, with xStocks holding $610.7 million and bStocks at $579.6 million. These issuers accounted for 22.3% and 21.2%, respectively, of the total $2.7 billion tokenized stock market. Ondo Finance remained the top issuer, managing $971.8 million in tokenized stock value.
| Issuer | Tokenized Stock Value | Market Share (%) |
|---|---|---|
| Ondo Finance | $971.8 million | ~36% |
| xStocks (Kraken) | $610.7 million | 22.3% |
| bStocks (Binance) | $579.6 million | 21.2% |
The broader tokenized stock market has continued to expand. Data from RWA.xyz indicated $2.43 billion in distributed value as of Friday, marking an approximate 5% increase over the previous 30 days.
Tokenized stocks are digital representations of traditional equity shares, allowing blockchain-based trading and ownership. These instruments attract investors seeking on-chain exposure to real-world assets without leaving the crypto ecosystem.
Mini dictionary: Tokenized stocks, also known as synthetic or blockchain-based equities, are digital assets designed to mirror the price and ownership structure of traditional stocks. These can be bought, sold, and settled on blockchain platforms, offering greater accessibility and fractional ownership to investors.
