Reports said that affluent investors in Asia are neither shy nor ignorant about crypto, with research revealing that 52% of them held some form of a digital asset during Q1 2022.
It has been reported that digital assets, which include cryptocurrencies, stable coins, and crypto funds, made up, on average, 7% of the surveyed investors’ portfolios, making it the fifth-largest asset class for investors in Asia.
However, this was more than they allocated to foreign currencies, commodities and collectibles, and in some cases, was on par with or exceeded the amount invested in private equity/venture capital and hedge funds.
Accenture said the survey was conducted with more than 3,200 clients across China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, and Thailand. The company defines an affluent investor as anyone that manages investable assets of between US$100,000 to $1 million.
The report said that investors in Thailand and Indonesia had the largest percentage of digital assets in their portfolios compared to their peers. Though half of the investors in Asia were already holding digital assets in Q1 2022, Accenture’s research indicates that a further 21% are expected to invest in them by the end of 2022, meaning as many as 73% of wealthy Asian investors could hold a digital asset by the end of the year.
Likewise, the firm found that wealth management firms, those that provide financial planning, tax, investment advice, and estate planning to their clients, have been slow to board the crypto train. Sixty-seven percent of wealth management firms said they have no plans to offer digital asset products or services.
Wealth management firms cited a lack of belief and understanding of digital assets, a wait-and-see mindset, and the operational complexity of launching a digital asset offering as the main reason for holding back, leading them to prioritize other initiatives instead.
“This lack of engagement by firms means many clients are seeking advice about digital assets on unregulated forums, including peer-to-peer advice on social media.”
Thus, Accenture concluded:
“While many firms are hesitant to enter the digital assets space, and for a range of reasons, their competitors have shown that success is possible.”