Bitcoin has soared to record highs of over $ 67,000 this year.
Edward Smith / Getty Images
- Startup founder Michael Martocci told WSJ that he invests 90% of his investment money in crypto.
- Like most wealthy millennials, the 26-year-old runs his own wealth management company.
- Martocci isn’t interested in golfing with a Goldman Sachs advisor who wants his business.
Michael Martocci, a wealthy 26-year-old based in Miami, is pushing the majority of his investment money into cryptocurrencies, his appeal suggesting a trend among wealthy millennials to manage their own money rather than relying on traditional financial advisors, one said Story in the Wall Street Journal.
Monitoring hundreds of thousands of dollars in his investments, he puts 90% of his money in crypto.
“It’s easy to self-manage $ 500,000, $ 1 million,” Martocci told the newspaper in a report released Monday, saying he spends less than an hour a week monitoring his investments.
He has dodged golf invitations and other offers from a Goldman Sachs financial advisor seeking him as a client. Most of Martocci’s fortune is concentrated in SwagUp, his company that makes and sells branded goods such as shopping bags.
He looks for risky investments that could potentially double or triple his money versus those that offer “market-like returns” according to the WSJ. Martocci, a user of Robinhood, is like many other young investors who think inexpensive do-it-yourself digital platforms are good enough to give direction in investing. Plus, many want to invest money in riskier assets like cryptocurrencies and tech startups that mainstream consultants don’t offer.
About 70% of households with net worth of $ 500,000 or more that were run by someone under the age of 45 had an investment style in 2019 that was either highly or largely self-determined, according to research firm Aite-Novarica Group, which conducted an analysis of the Federal Reserve data. That number was up from 57% in 2010.
Almost half of households aimed for an above-average level of risk with an above-average return, compared with 35% in 2010.
The cryptocurrency market was attractive to investors as the prices of bitcoin, ether, and other digital assets boomed. The market topped $ 3 trillion in valuation for the first time on Monday when ether hit record highs due to a higher burn rate of tokens and the influx of new money into the market.
Martocci meanwhile said he would seek the help of a financial advisor if he gets any windfall in selling SwagUp.
