Half of Asia’s affluent investors have crypto in their portfolio: Report

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Asia’s affluent investors are neither shy nor ignorant about crypto, with research showing that 52% of them held some form of digital asset during Q1 2022.

According to research by Accenture published on June 6, digital assets, which include cryptocurrencies, stablecoins and crypto funds, account for an average of 7% of the portfolios of investors surveyed, making it the fifth largest asset class for investors in Asia. Is.

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This exceeded the amount allocated for foreign currencies, commodities and collectibles, and in some cases was equal to or greater than the amount invested in private equity/venture capital and hedge funds.

Accenture said the survey was conducted with more than 3,200 customers in China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore and Thailand. The company defines an affluent investor as anyone who manages to have investable assets between US$100,000 and $1 million.

Investors in Thailand and Indonesia had the largest percentage of digital assets in their portfolios compared to their peers.

Source: Accenture.com

Although half of investors in Asia already held digital assets in the first quarter of 2022, research from Accenture indicates that another 21% are expected to invest by the end of 2022, meaning 73% of wealthy Asian investors hold digital assets. can keep. property by the end of the year.

“Digital assets represent a rare, clear industry white space with significant business opportunities.”

Wealth managers step back

However, the firm found that wealth management firms, which provide financial planning, tax, investment advice and estate planning to their clients, have been slow to board the crypto train. 67 per cent of wealth management firms said they have no plans to offer digital asset products or services.

“For wealth management firms, digital assets are a US$54bn revenue opportunity – which most are ignoring.”

Wealth management firms cited a lack of trust and understanding of digital assets, a wait-and-see mentality, and the operational complexity of launching a digital asset offering as the main reasons behind holding them back, leading them to prioritize other initiatives instead. was given.

Source: Accenture.com

Accenture said the lack of engagement by the firms has meant that investors have been forced to seek their financial advice about crypto from untrusted sources.

“The lack of engagement by firms means that many clients are seeking advice about digital assets on unregulated forums, including peer-to-peer advice on social media.”

related: Social media blamed for $1B in crypto scam damages in 2021

However, Accenture has emphasized the importance for wealth management firms to move forward in the digital asset space or leave the risk behind.

“While many companies are hesitant to enter the digital asset space, and for a variety of reasons, their competitors have shown that success is possible.”

Investors in Asia have been warming up to crypto, especially in the past year.

In April, a report by the Gemini cryptocurrency exchange found that crypto adoption numbers skyrocketed in 2021, especially in countries like India and Hong Kong. About 45% of respondents in Asia Pacific bought their first crypto in 2021.