Something changed in how Americans think about wealth. The numbers tell a story that traditional advisors didn’t see coming.
Charles Schwab’s 2025 Modern Wealth Survey reveals that 67% of Americans believe they must look beyond traditional stocks and bonds to achieve diversification and investment success. Even more striking, 42% now consider the classic 60/40 portfolio outdated.
The shift isn’t just sentiment. Performance data backs the skepticism.
When Returns Tell a Different Story
Bitcoin has outperformed traditional markets in 2025, posting a 19% year-to-date gain compared to the S&P 500’s 15% increase. When measured in bitcoin terms, the S&P 500 has actually declined 15% this year.
The long-term comparison proves even more dramatic. Since 2012, the S&P 500 has lost 99.98% of its value when priced in bitcoin.
These numbers explain why investor behavior has shifted so decisively. When traditional diversification underperforms alternative assets by such margins, portfolio theory faces legitimate questions.
Mainstream Acceptance Accelerates
The survey data shows mainstream acceptance has reached critical mass. Approximately 41% of Americans now view cryptocurrency as a worthwhile investment, with 23% having always believed in its potential and another 18% recently converted.
Current crypto investors show even stronger conviction. A full 65% plan to increase their holdings over the next 20 years.
This confidence has reshaped the investment landscape. On average, cryptocurrency now represents 10% of investors’ portfolios, comparable to bonds at 8%. The traditional fixed-income allocation has competition.
Jonathan Craig, Head of Retail Investing at Charles Schwab, observes the broader pattern: “Investors are more engaged than ever, actively trading and exploring new strategies in pursuit of their broader financial goals.”
Beyond Crypto
The alternative asset interest extends past cryptocurrency. Nearly half of American investors express interest in private equity, hedge funds, and venture capital, with 47% expecting to increase alternative investments over the next two decades.
Institutional adoption provides validation. The 12 US spot Bitcoin ETFs collectively hold 1,264,976 BTC valued at $148.6 billion, representing over 6% of Bitcoin’s total supply. BlackRock’s IBIT ETF alone attracted approximately $50 billion in assets under management in less than one year.
Traditional investment vehicles have adapted. Investors have put more than $1 trillion into US-based ETFs in 2025, on pace for a new annual record. Much of that inflow has directed toward gold and crypto ETFs, demonstrating how Americans now access alternative assets through familiar structures.
The Patient Capital Paradox
One survey finding challenges common assumptions about alternative asset investors. More than 60% of Americans say today’s market environment demands a long-term view. Nearly 70% of investors report having more patience now than when they first started investing.
The narrative of instant-gratification crypto speculation doesn’t match the data. Alternative asset investors appear to understand the volatility they’ve accepted.
Alternative assets under management have surged to over $20 trillion in 2025, up from $7.2 trillion in 2014. Forecasts project total alternative assets will increase by 60% over the next five years, reaching $32 trillion by 2030.
What the Numbers Suggest
The 67% figure represents more than dissatisfaction with recent returns. It signals a fundamental reconsideration of what diversification means in modern markets.
Traditional portfolio theory emerged in an era of different market structures, correlations, and available assets. Today’s investors have access to asset classes that didn’t exist or weren’t accessible to retail investors a decade ago.
The survey reveals a generation of investors willing to embrace higher risk for potentially enhanced returns. Whether this approach proves successful over full market cycles remains to be determined.
What’s certain is that financial institutions have noticed. The explosion of crypto ETFs, alternative investment platforms, and new asset class accessibility reflects industry response to documented demand.
The investment landscape has expanded. Two-thirds of Americans believe that expansion is necessary. The coming years will test whether their conviction matches market reality.
