Asian Wealth Managers Turn to Crypto for Diversification and Inflation Hedge
In Asia, 76% of family offices and high-net-worth people currently own cryptocurrency, and 16% intend to do so in the future, indicating that digital assets have become a popular alternative investment class for private wealth. Compared to the 2022 study, which found that 34% of respondents intended to invest and 58% had exposure to digital assets, this is a significant improvement.
According to a report from digital asset technology platform Aspen Digital, more private wealth managers from Asia are getting involved in the cryptocurrency market, with some predicting that Bitcoin could reach $100,000 by the end of the year. According to the report, the majority of respondents stated that the main reason for investing in digital assets was higher returns, while more and more respondents mentioned the appeal of diversification and inflation hedging.
High-Net-Worth Investors Bullish on Crypto: Bitcoin Expected to Hit $100K by Q4
The most recent results are based on a study that was carried out in the second part of this year among over 80 high-net-worth individuals and family offices. Twenty percent of respondents had assets under management (AUM) of $500 or more, while the majority had AUMs between $10 million and $500 million. 67% of respondents expressed interest in developing decentralized finance (DeFi), followed by 61% in artificial intelligence and DePin (a decentralized physical infrastructure network), 50% in blockchain infrastructure, and 47% in tokenizing real-world assets (RWA).
We believe every asset class will eventually transition onto the blockchain, capitalizing on the competitive advantages that blockchain technologies offer, representing immense growth potential for DeFi. Currently, approximately 85 million users are engaging with financial services on-chain and we anticipate this number will surpass 200 million by the end of 2025,
Re7 Capital
According to 31% of respondents, the private wealth sector had a long-term bullish outlook and thought Bitcoin would reach at least $100,000 by the end of the fourth quarter. Interest rate reductions, the outcome of the US presidential election, and positive developments in the cryptocurrency sector were cited by respondents as the primary bullish factors. However, the report identified three major barriers to wider adoption: legal uncertainty, the fragmented nature of the digital asset environment, and poor user experience.
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