Investing in cryptocurrency and giving to charity can go hand in hand, according to a study by Fidelity Charitable released Thursday.

The owners of cryptocurrency, such as bitcoin or ethereum, are a disproportionately more charitable group, according to the Fidelity Charitable study, “Cryptocurrency and Philanthropy.” Forty-five percent of cryptocurrency investors donated $1,000 or more to charity in 2020, compared with 33% of all investors.

Fidelity Charitable said the reasons may be that millennials, who are more comfortable investing in cryptocurrencies, are also more inclined to give money to charity than other generations, although some say the donation process is cumbersome.

“Cryptocurrency’s popularity among millennials makes it increasingly likely that this trend is here to stay. Millennials are more knowledgeable about cryptocurrency and more likely to have invested than older generations—and they are far more confident in the long-term outlook for digital assets,” the study said.

Nearly half of the millennials in the study (48%) said they are knowledgeable about cryptocurrency, while only 18% of total investors were, and 35% of millennials said they currently own cryptocurrency, while only 13% of investors on the whole did. Among millennials who don’t own cryptocurrency, half said they are likely to consider investing in digital assets in the next year.

The study included 1,216 investors in the U.S. who had a minimum of $25,000 in investable assets outside of an employer retirement plan.

“As cryptocurrency increases in value, there is a growing trend to use it as an asset to give to charity,” said Tony Oommen, the vice president of charitable planning at Fidelity Charitable, in an interview Wednesday. Oommen works with advisors on charitable giving, tax strategies and other issues. Cryptocurrency gifts to charities have increased fivefold at Fidelity since the beginning of the year, he said.

“There is a greater awareness that this is something that can be done, and that increases the amount that can be donated without costing the donor any more,” he said. The donor does not have to pay capital gains tax on noncash assets that are donated to charities, and that frees up more money for the charity.

“Cash is the most expensive thing donors can give to charity,” Oommen said.

According to the survey, nearly half of the millennials said they believe cryptocurrency is a smart investment, while only 6% of baby boomers did. In addition to their disproportionate interest in cryptocurrency, millennials are also a charitably inclined generation. Nearly 90% of millennials said charitable giving is an important part of their lives, while only 74% of total investors did.

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