Interest in Bitcoin and NFT is increasing among the super-rich in Hong Kong and Singapore
Despite the volatility of the past two years, the cryptocurrency industry continues to expand, driven in part by investors’ interest in diversifying their portfolios with the new asset class, including family offices and the ultra-wealthy of Hong Kong and Singapore.
In fact, the majority of family offices (FOs) and high-net-worth individuals (HNWIs) from Hong Kong and Singapore invest in crypto assets, a study titled “Investing in Digital Assets – Family office and high-net-worth investor perspectives” on digital asset allocation’ and published on October 24 by KPMG China and Aspen Digital have revealed.
The majority of the super rich invest in crypto
According to the report, 92% of respondents in these territories said they were interested in crypto investing, with 58% of FOs and HNWIs already investing in digital assets and 34% planning to do so in the future.
As Yang He, CEO of crypto asset management platform Aspen Digital, explained these results:
“Over the past 18 months, we have seen a huge increase in institutional investor interest in digital assets. For the Asian private wealth management industry, digital assets represent an emerging asset class with opportunities unmatched in other financial products.”
Which cryptoassets are the most popular?
Furthermore, the most popular digital assets were found to be Bitcoin (BTC), with 100% of crypto investors buying it, and Ethereum (ETH), with 87%, while 60% of the interviewed respondents were currently investing in non-fungible tokens. (NFTs).
That said, Paul McSheaffrey, financial services partner at audit and advisory firm KPMG China emphasized that:
“Increasing allocation to digital assets requires related hedging and derivative products to allow investors to manage risk effectively. The development of such products outside of popular tokens such as Bitcoin and Ethereum will help drive allocation to a wider range of digital assets.”
Hong Kong and Singapore as crypto hubs
Meanwhile, both Hong Kong and Singapore are vying for the enviable status of the main hub of the main crypto industry, and both are doing their part to outdo the other in various areas of interest, including regulation and banking.
Specifically, Hong Kong is mulling allowing retail investors to invest directly in digital assets, while working on legislation that would clean up cryptocurrency policies and help grow the crypto market in the city, as Finbold reported.
At the same time, Singapore’s largest bank DBS Group Holdings has expanded access to crypto trading services for its 100,000 wealthy investors, while two crypto exchanges – Blockchain.com and Coinbase – received operational approval from the authorities in one week.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
