Despite its volatility over the past two years, the cryptocurrency industry has continued to expand, driven in part by investors’ interest in diversifying their portfolios with new asset classes, including family offices and the wealthy in Hong Kong and Singapore.
In fact, the majority of Family Offices (FOs) and High Net Worth Individuals (HNWIs) from Hong Kong and Singapore invest in crypto assets, a study titled “Investing in Digital Assets – Family Offices and the Perspectives of High Net Worth Investors.” on Digital Asset Allocation’ and published on October 24 by KPMG China and Aspen Digital has been revealed.
Most of the wealthy invest in cryptocurrency
According to the report, 92% of respondents in these regions said they are interested in crypto investments, with 58% of financial and wealthy organizations already investing in digital assets and 34% planning to do so in the future.
As Yang He, CEO of crypto asset management platform Aspen Digital, explained these findings:
Over the past 18 months, we have seen a massive increase in institutional investor interest in digital assets. For the Asian private wealth management industry, digital assets represent an emerging asset class with opportunities unparalleled in other financial products.”
What are the most popular crypto assets?
In addition, the most popular digital assets were found to be Bitcoin (BTC), with 100% of crypto investors buying it, and Ethereum (ETH), at 87%, while 60% of the interviewed participants are currently investing in non-crypto tokens. replaceable (NFT). ).
However, Paul McSheaffrey, financial services partner at audit and advisory firm KPMG China, emphasized that:
Increased allocation of digital assets requires hedging products and related derivatives to enable investors to manage risk effectively. Developing such products outside of popular tokens like Bitcoin and Ethereum will help drive personalization into a broader range of digital assets.”
Hong Kong and Singapore as cryptocurrency centers
Meanwhile, Hong Kong and Singapore are vying for the position as a major hub for the cryptocurrency industry, with both doing their part to beat each other in different areas of interest, including regulation and banking.
Specifically, Hong Kong is considering allowing private investors to invest directly in digital assets, while working on legislation that would clarify its policy on cryptocurrencies and help grow the city’s crypto market, Coinphony reported.
Meanwhile, Singapore’s largest bank, DBS Group Holdings, has expanded access to crypto trading services for its 100,000 wealthy investors, while two crypto exchanges – Blockchain.com and Coinbase – received operational approval from the government within a week.
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The published interest in Bitcoin and NFTs among the wealthy in Hong Kong and Singapore first appeared on Coinphony.