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Family Offices in Singapore and HK Still Highly Interested in Crypto: Survey
Wealthy individuals across the world's biggest financial hubs remain highly interested in crypto despite the ongoing downturn, a new survey found.
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Affluent individuals across global wealth management hubs like Singapore and Hong Kong retain a strong interest in crypto despite the ongoing market downturn, according to a new survey released Wednesday. Over 70% of the surveyed 1,500 wealthy individuals said they will continue investing in digital assets in the future.
70% of Super Rich Respondents Keen on Crypto
A new survey showed that wealthy individuals across major financial hubs such as Singapore and Hong Kong remain highly interested in crypto and digital assets despite the ongoing crypto winter that has obliterated market prices in recent months. According to a study conducted by Longitude Research and digital asset ecosystem Matrixport, the super wealthy individuals will continue diversifying their portfolios through crypto investments.
The survey, titled “The Private Wealth in Digital Assets Study 2022”, was carried out in May and June across wealth management hubs like Singapore, Hong Kong, Taiwan, Australia, and the UK. Investors surveyed in the study had a total net worth of $6.33 billion.
The research found that over 70% of the 1,500 surveyed investors said they are “moderately or highly interested in digital assets,” while nearly half believe that the majority of assets will be digitalized in the future. Further, more than 50% said they bought crypto in the past year.
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High Net Worth Individuals Most Interested in Crypto After LUNA Crash
Overall, the survey also showed that high net-worth individuals (HNWIs) were most interested in investing in crypto following the collapse of TerraUSD and LUNA earlier this year. The crash triggered a significant sell-off in the crypto market, similar to the recent FTX debacle.
60% of the surveyed individuals are considered mass affluent individuals (MAIs) – people that have investible assets worth between $500,000 and $5,000,000. 26% were HNWIs with a minimum of $5 million of investible assets, while the remaining portion was single and multi-family offices.
Singapore, which tightened crypto regulations after the collapse of LUNA, shared a similar sentiment as 53% of investors said they intend to invest 75% to 100% of their portfolio in digital assets despite the current market turmoil. Interestingly, the number of investors highly interested in digital assets increased by 2.2 times after the LUNA implosion, the survey found.
It also showed that sophisticated investors had at least 25% of their portfolio parked in digital assets, while experimental investors had up to a quarter of their portfolio invested in crypto. Those reluctant to invest in crypto said fraud, cyber security risks, market volatility, and lack of knowledge about crypto assets were key reasons keeping them from entering the market.
Were you surprised by the fact that wealthy individuals are most interested in crypto? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
