The most wealthy individuals on Earth have discovered bitcoin and crypto. A new survey by consulting firm Capgemini shows that 71 percent of the richest people on Earth invest in bitcoin and crypto. In total, Capgemini surveyed 2,973 individuals for the study, 46 percent of whom have assets in excess of 30 million dollars (28.5 million euros) and the rest hover between 1 and 30 million dollars.
Crypto is especially popular among young wealthy
Bitcoin and other cryptocurrencies are especially popular among the young rich. In the category under 40, an average of 9 out of 10 wealthy people invest in digital assets. In fact, the latest cohort of the study indicates that cryptocurrencies are their favorite investment. In particular, Crypto ETFs and Metaverse products are doing well.
Despite the popularity of the industry among the world’s richest, it is still far from making up the bulk of the portfolio. The wealthy surveyed by Capgemini invest on average around 14 percent of their portfolio in “alternative investments”. In addition to cryptocurrencies, this also includes commodities, currencies, private equity and hedge funds.
Increasing demand for education
However, Capgemini observes that the asset management industry is seeing an influx of investments in digital assets. This, according to Nilesh Vaidya, the head of retail asset management, is driving an increasing demand for education. “The flow of new investment categories like sustainable investing and digital assets is having a critical impact on the asset management industry,” Vaidya told Cointelegraph.
Some investment firms are trying to jump on this trend by launching special products for digital assets and other emerging investment categories. For example, the US commercial bank Morgan Stanley introduced in March 2021 the opportunity for the wealthier part of their clientele to invest in bitcoin. Customers of the private-banking branch of BBVA Switzerland have received a similar option.
Crypto is also popular in Asia
The Capgemini report follows previous Accenture research from 2022. It found that 52 percent of wealthier investors in Asia had some form of digital assets in their portfolios in the first quarter. On average, for the wealthy Asians, digital assets made up about 7 percent of their portfolio. Interestingly, that allocation is higher than the percentage they invested in foreign currency.
Accenture surveyed more than 3,200 customers from China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore and Thailand. Accenture qualified an investor as wealthy if the assets exceeded $ 100,000. This is a slightly different category than the wealthy people that Capgemini surveyed for their research.
Investors in Thailand and Indonesia had the largest percentage of their wealth in digital assets. Both Thailand and Indonesia scored an average of 9 percent. By far the bulk of the wealthier Asians ‘ wealth was in stocks and bonds.
Like Capgemini, Accenture also came to the conclusion that most fund managers are relatively slow to adopt crypto products. In fact, the majority stated in Accenture’s survey that they have no plans to offer crypto-related services. Those statements will not be regretted by the firms surveyed by Accenture at current rates.