Report: Half of Asia's wealthy investors hold cryptocurrencies in their portfolios

Wealthy investors in Asia are neither hated nor ignorant of cryptocurrencies, with 52% holding some form of digital asset in the first quarter of 2022, according to research.

According to a research report released by Accenture on June 6, digital assets (including cryptocurrencies, stablecoins and crypto funds) accounted for an average of 7% of the portfolios of investors surveyed, making them the fifth largest asset class invested by Asian investors. .

This exceeds the amount they have allocated in foreign exchange, commodities and collectibles, and in some cases equals or exceeds the amount invested in private equity/venture capital and hedge funds.

Accenture said the survey was conducted among more than 3,200 clients from China, India, Indonesia, Japan, Malaysia, Singapore and Thailand. The firm defines wealthy investors as those who manage $100,000 to $1 million in investable assets.

Thai and Indonesian investors have the largest proportion of digital assets in their portfolios.

Source: accenture.com

Although half of investors in Asia already hold digital assets in the first quarter of 2022, Accenture research shows that a further 21% of investors are expected to invest in digital assets by the end of 2022, which means that by the end of this year, as many as 73% of wealthy investors in Asia are likely to hold digital assets.

"Digital assets represent a rare, clear industry gap with enormous business opportunities."

Wealth managers on hold

However, the firm found that wealth managers that provide clients with financial planning, taxation, investment advice and estate planning have been slow to jump on the cryptocurrency train. 67% of wealth managers said they have no plans to offer digital asset products or services.

“Digital assets are a $54 billion revenue opportunity for wealth managers, yet most are ignoring it.”

Wealth managers cited a lack of trust and understanding of digital assets, a wait-and-see attitude, and the operational complexity of launching digital asset products as the main reasons for their hold, leading them to prioritize other initiatives.

Source: accenture.com

Accenture said the company's lack of involvement meant investors were forced to obtain financial advice on cryptocurrencies from unreliable sources.

“Lack of engagement by firms means many clients seek advice on digital assets in unregulated forums, including peer-to-peer advice on social media.”

However, Accenture emphasized the importance of wealth managers moving into the digital asset space or risk being left behind.

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

Enthusiasm for cryptocurrencies among Asian investors has been on the rise, especially in the last year.

In April, a report by cryptocurrency exchange Gemini found that cryptocurrency adoption will soar in 2021, especially in countries like India. Some 45% of respondents in the APAC region bought their first cryptocurrency in 2021.

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