Binance Data: Gen Z Builds ETF-Heavy Portfolios, Trades Less

Binance Research says Gen Z traders on the exchange are steadily shifting a larger share of their equity-related activity toward exchange-traded funds (ETFs), while direct stock trading is taking up less of the cohort’s overall flow. The trend stands out across Binance’s coverage of direct equities, tokenized stocks, and traditional finance perpetuals.

In early August, Binance Research reported that ETFs made up 25% of Gen Z trading volume within its analysis group. The same study found that ETFs accounted for 21.9% of Gen Z net equity inflows in July, up from 18.5% in June, as the share routed to individual stocks fell to 74.2% from 77%.

Key takeaways

• ETF demand is rising: Gen Z’s ETF share of trading volume reached 25% in early August, and ETF net inflows climbed to 21.9% in July.
• Direct stocks lose share: the portion of Gen Z net equity inflows going to individual stocks dropped to 74.2% from 77%.
• Gen Z trades less often: in TradFi perpetuals, Gen Z averaged 13 monthly trades versus 17 for Millennials and 16.5 for Gen X.
• Fewer sell orders among Gen Z: 22% of Gen Z direct-equity accounts had never placed a sell order, compared with 19% for Gen X and 9% for Baby Boomers.
• Limited appetite for leverage: 88.2% of Gen Z TradFi perpetual accounts recorded no activity in leveraged or inverse ETFs.

Gen Z’s ETF shift: what the Binance Research data shows

The Binance Research analysis compared Gen Z accounts with older working-age generations (Millennials, Gen X, and Baby Boomers) across several measures, including trading frequency, net inflows, and the use of leverage. The study looks at activity spanning direct equities, tokenized stocks, and traditional finance perpetuals.

Within that framework, the ETF share of Gen Z activity increased in a stepwise pattern. Binance Research pointed to July as a key month: ETF net inflows for Gen Z rose to 21.9%, up from 18.5% in June. Over the same period, the allocation to individual stocks declined, falling to 74.2% from 77%.

While the figures describe allocation, they also hint at how younger participants may be approaching equity exposure on exchange venues that offer both spot-like instruments and ETF wrappers. For investors, that matters because a growing preference for ETFs can mean broader diversification and potentially different risk profiles compared with concentrated single-stock positioning.

Trading behavior differences: frequency, “buy-only” accounts, and leverage use

Binance Research also reported behavioral differences in how often Gen Z engages with these products. Across all three categories examined, Gen Z traded less frequently than other working-age cohorts. In TradFi perpetuals, Gen Z averaged 13 monthly trades—below Millennials at 17 and Gen X at 16.5.

The study further found a notable skew in sell-order behavior among younger users. For Gen Z direct-equity accounts, 22% had never placed a sell order. By comparison, 19% of Gen X accounts and 9% of Baby Boomer accounts showed the same “buy-only” pattern. Millennials, meanwhile, had the highest share of buy-only accounts at 30%.

Among the Gen Z buy-only accounts, Binance Research cited cumulative purchases that included Broadcom and Tesla, as well as the Schwab US Dividend Equity ETF—suggesting that even when participants primarily buy, their preference can extend to ETF exposure rather than only individual stocks.

On leverage, Gen Z also appeared more cautious in Binance Research’s view. The share of Gen Z TradFi perpetual accounts with no activity in leveraged and inverse ETFs was 88.2%. That compares with 84.5% for Millennials and 85.9% for Gen X.

Tokenized stocks: bStocks briefly passes xStocks as the market keeps expanding

Separately from the generational ETF flow data, Binance-related tokenized equities saw a brief ranking change this week. Binance’s bStocks temporarily overtook Kraken’s xStocks as the second-largest tokenized stock issuer, according to Token Terminal.

As of Tuesday, Token Terminal data showed bStocks at $610.6 million in tokenized stock value, versus xStocks at $601.2 million. By Friday, the positions reversed: xStocks were at $610.7 million while bStocks stood at $579.6 million. In that snapshot, xStocks represented 22.3% of the roughly $2.7 billion tokenized stock market, while bStocks accounted for 21.2%.

Ondo Finance remained the largest issuer in that period, with $971.8 million in tokenized stock value. Token Terminal also tracked broader growth across the sector, with RWA.xyz reporting distributed value for its tokenized stocks page at $2.43 billion as of Friday—about 5% higher over the previous 30 days.

For market observers, the rapid flip between bStocks and xStocks underscores how quickly tokenized equity rankings can change in a still-expanding segment—especially when issuance is relatively concentrated among a few providers. It also reinforces why investors tracking tokenized assets often monitor issuer shares as a proxy for where capital is flowing within the broader regulated-assets trend.

What to watch next: early-stage data limits and evolving allocation

Binance Research cautioned that its direct-equities product only reached meaningful scale in June, creating a relatively short window to draw longer-term conclusions. Even so, the direction of travel—more ETF allocation among Gen Z and reduced share for individual stocks in inflows—offers a signal worth monitoring as the data window expands.

Investors and traders should watch whether the ETF share in Gen Z activity continues to rise beyond early August and whether tokenized stock issuance rankings stabilize or remain volatile as additional capital enters the market.