A SURVEY SUGGESTS THAT 71%OF THE WORLD’S RICH PEOPLE HAVE INVESTED IN DIGI ASSETS
High-value individuals (HNWI) receive secret money and other digital assets, and 71% of wealthy people invest in digital assets according to a new study.
Technology consulting company Capgemini released its 2022 "World Wealth Report" on Tuesday. It surveyed 2,973 HNWIs worldwide, with 54% reporting wealth of $ 1 million to $ 30 million and 46% reporting wealth of 30 million and over.
The survey asked about investment options for emerging commodities such as digital assets, classifying them as crypto currencies, trading currencies (ETFs), non-affiliated tokens (NFTs) and metaverse related products.
Of the nearly seven million people who invested in digital assets, the highest value was less than 40 years. More than nine in ten of this age group have invested in digital assets. The minority group said their favorite cryptocurrencies are investment, with crypto ETFs and metaverse products also highly desirable.
Crypto does not build many portfolios, however, and on average, HNWI allocates only about 14% of "separate investments," which includes crypto alongside assets, funds, private equity and hedge funds.
Capgemini noted, however, that the wealth management industry sees an influx of investments in digital assets and this has "increased the demand for educational skills."
Nilesh Vaidya, head of supply chain management said:
“The influx of new investment methods such as sustainable investment and digital assets has a huge impact on the wealth management industry. Asset management firms must prioritize providing timely education on this practice in order to retain their customers. ”
Some firms are already embroiled in the practice and are seeking first advantage in the niche sector by establishing targeted investment products.
Investment bank Morgan Stanley introduced Bitcoin (BTC) exposure to its one million customers in March 2021, only those with $ 2 million or more in cash could invest.
BBVA Switzerland's private bank customers are also offered access to crypto trading and storage services, as well as a similar offering from Wells Fargo in 2021.
The report comes in the wake of a recent Accenture survey, which revealed that 52% of affluent Asian investors held some form of digital assets in the first quarter of 2022, making up, on average, 7% of audited investor portfolios.
Similarly, Accenture also found that asset management firms were slow to accept cryptocurrency investment products or digital assets exposure, with many saying they had no plans to provide related services.