A new report from Aspen Digital highlights a significant increase in interest in cryptocurrencies among Asian private wealth. In 2023, 76% of private investors have already invested in digital assets, with an additional 18% planning to do so in the near future.
Asian Wealth and Digital Assets
Interest in digital assets within Asia’s private wealth sector has grown since the Hong Kong-based wealth management platform conducted its previous survey in 2022. At that time, only 58% of respondents had ventured into the digital asset space. The current survey covered 80 family offices and high-net-worth individuals across Asia, managing assets between $10 million and $500 million. Among respondents already invested in crypto, 70% have allocated less than 5% of their portfolios to digital assets, though some have increased their allocations to over 10% by 2024.
Fascination with Blockchain and DeFi
Asian private wealth appears increasingly drawn to the profit opportunities presented by blockchain’s technological applications. According to the report, two-thirds of respondents expressed interest in decentralized finance (DeFi), while 61% showed interest in artificial intelligence and decentralized physical infrastructure networks (DePIN). Additionally, respondents are generally optimistic about Bitcoin’s (BTC) outlook for the remainder of 2024, with 31% predicting a price of $100,000 by the year-end.
ETF Impact on the Crypto Market
The approval of spot Bitcoin exchange-traded funds (ETFs) has boosted digital asset appetite among Asian investors, with 53% of respondents gaining exposure through funds or ETFs. This trend aligns with global developments, as highlighted in the recent Global Crypto Hedge Fund Report by AIMA and PwC. Their survey of nearly 100 hedge funds, managing a combined $124.5 billion, reported a rise in crypto exposure from 29% in 2023 to 47% in 2024, driven by regulatory clarity and the launch of crypto ETFs in the United States and Asia.
The growing interest in digital assets among Asia’s private wealth represents a global trend towards the increasing role of cryptocurrencies in financial markets, aided by technological innovations and new financial instruments.