Cryptocurrency-focused pension funds are attracting increasing attention from younger adults, reflecting a shift in how new generations view digital asset investments.

Up to 20% of Gen Z and Alpha are open to receiving pensions in cryptocurrency, according to a Jan. 16 Bitget Research report shared with Cointelegraph.

Moreover, 78% of the respondents expressed greater trust in “alternative retirement savings options” over traditional pension funds.

The findings highlight a major shift in how younger generations approach financial planning, according to the report, which states:

“Many are skeptical of the old systems and are increasingly leaning towards decentralized finance and blockchain-based solutions.”

Bitget’s findings indicate a growing preference for decentralized finance and blockchain-based solutions among young people.

The report noted that 40% of individuals in these age groups had already invested in cryptocurrency as of January.

Industry insiders predict another year of growing crypto adoption, specifically among institutional and retail investors, thanks to increasing crypto regulatory clarity and soaring cryptocurrency valuations.

Related: MiCA can attract more crypto investment despite overregulation concerns

“Wake-up call for the financial industry”

The survey’s findings are a “wake-up call for the financial industry,” according to Gracy Chen, the CEO of Bitget, who stated in the report:

“Younger generations are no longer content with one-size-fits-all pension systems. They’re looking for modern solutions that give them more control, flexibility and transparency.”

Despite the heightened interest, the report acknowledged three key obstacles to widespread crypto adoption: price volatility, regulatory uncertainty and cybersecurity threats.

Related: Hyperliquid’s $7.5B airdrop marks shift from centralized token listings

Cryptocurrency hacks have been particularly damaging to the mainstream reputation of the industry in recent years.

During 2024, crypto hackers stole over $2.3 billion worth of digital assets, surpassing the $1.69 billion stolen in 2023 by 40%, Cointelegraph reported.

Access control vulnerabilities accounted for $1.9 billion worth of value stolen in 2024, or over 81% of the total amount lost to crypto hacks, across 67 cybersecurity incidents.

Still, offchain transaction validation could prevent 99% of all crypto hacks and scams by preemptively simulating and validating blockchain transactions in an offchain environment, according to Michael Pearl, vice president of GTM strategy at blockchain security company Cyvers.

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