According to a recent survey, most of the world’s richest have engaged in digital assets, and financial advisory organizations have been recommended to make education and advisory a priority.
As per a recent survey, 71 percent of rich individuals (HNWI) have invested in cryptocurrencies and other digital products.
Capgemini, a digital consulting firm, presented its World Wealth Report 2022 on June 14. It surveyed 2,973 global HNWIs, with 54 percent claiming wealth between $1 million and $30 million and 46 percent claiming worth of $30 million or more.
The poll inquired about investment avenues for new risky assets such as cryptocurrencies, associated exchange-traded funds (ETFs), non-fungible tokens (NFTs), and metaverse-related assets.
The majority of the one in seven affluent people engaging in digital products were under the age of 40. In this age bracket, more than nine out of ten have ventured into digital products. Cryptocurrencies are based on the foregoing among the younger generation, with cryptocurrency ETFs and metaverse assets also popular.
Yet, crypto does not make up the bulk of portfolios, with HNWIs investing just about 14% of their assets in “investment alternatives,” which include cryptocurrency and markets, commodities, leveraged buyouts, and hedge funds.
However, according to Capgemini, the financial advisory business is facing a surge in digital investment portfolios, which has “raised the requirement for instructional capacities.”
“The surge of new investment capital, such as competitive advantages that are sustainable and digital products, has a significant effect on the financial planning sector,” said Nilesh Vaidya, the firm’s director of consumer capital management. To keep their consumers, financial advisory firms must emphasize timely awareness about this tendency.”
Some companies are already aware of this fact and are attempting to get a competitive edge in this specialized market by offering financial products tailored to this population.
Morgan Stanley began offering Bitcoin (BTC) access to its affluent clients in March 2021, with only those with $2 million or more in wealth eligible to engage.
BBVA Switzerland’s financial institution clients were also granted access to crypto exchanges and safekeeping services, which will be followed by a comparable service from Wells Fargo in 2021.
The analysis follows earlier Accenture research that found 52 percent of affluent Asian financiers held some sort of virtual currency in the first quarter of 2022, accounting for an equivalent of 7% of the questioned investors’ holdings.
Similarly, according to Accenture, fund management organizations have been slow to adopt financial products like bitcoin or digital assets, with the bulk of them stating that they have no intention of doing so.
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