Reaching New Heights: Crypto Marketers Shift Focus to Older Generations
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Is Bitcoin a viable investment option for baby boomers? Recent ad campaigns seem to answer with a resounding yes. These campaigns follow the Securities and Exchange Commission’s approval on Jan. 10 of the first U.S. exchange-traded funds directly holding Bitcoin.
From industry giants like BlackRock to niche players like Bitwise Asset Management, firms are now rolling out Bitcoin ETFs. With nearly identical products, marketing becomes paramount in setting them apart, as noted by Eric Balchunas, an analyst at Bloomberg Intelligence. Many of these firms are honing in on an audience of older, wealthier, and more risk-averse advisers and investors.
Describing baby boomers as “the best generation” and bitcoin as a hedge against government devaluation, VanEck and others are investing heavily in TV commercials, targeting financial news shows like “Squawk Box” and “Cavuto: Coast to Coast.”
Unlike the flashy crypto ad blitz of the pandemic era, these ETF campaigns are expected to take a more subdued approach, devoid of celebrity endorsements like those seen with Tom Brady for FTX. Bitwise’s pre-SEC decision ad, featuring Jonathan Goldsmith, known for his role in Dos Equis’ iconic campaign, highlights a strategic move to capitalize on interest in Bitcoin without promoting a specific product.
Expanding Horizons: Hashdex, a crypto-focused investment firm, launched two pre-SEC approval videos aimed at garnering recognition among older demographics, explained Chris Glendening, head of marketing.
Regulators are adamant about ensuring transparency in marketing materials for these funds, stressing the need for clear disclosures regarding the risks tied to speculative assets, noted Gluck, senior director at Finra. Potential losses from theft of private keys or fraud must be communicated prominently in campaigns, possibly via voice-over, rather than relegated to slides at the end of videos, Gluck emphasized.
“Regulation doesn’t equate to safety,” cautioned Gluck, underscoring the importance of accurate perceptions about bitcoin’s risks.
Despite regulatory oversight, digital advertising avenues for these firms are expanding.
Alphabet has begun greenlighting ads for bitcoin ETFs on platforms like Google Search and YouTube in the U.S. post-SEC approval, as confirmed by a spokesperson. Meta Platforms, the parent company of Facebook and Instagram, is also revising its U.S. policies in light of the SEC’s decision, according to a spokesperson.
Not all approved Bitcoin ETF campaigns target older demographics.
Some established asset managers are embracing crypto aesthetics in their communications to build rapport with the Bitcoin community. VanEck’s inaugural TV ad for its HODL bitcoin ETF, for instance, features nods to crypto culture, including scenes shot at Pubkey, a bitcoin-themed bar in Manhattan, shared Vicki Chan, content strategy director.
Meanwhile, Grayscale Investments is leveraging its longevity and size in the crypto ETF market through TV and airport ads, positioning itself as a pioneer. Rather than solely focusing on older investors, the firm aims to use humor to engage a wider audience, explained Chief Executive Michael Sonnenshein.
“We view investing in this asset class as a unique opportunity,” Sonnenshein expressed, highlighting their strategy to appeal across generations and investor types.
