Crypto Investment Amongst Asian Private Wealth Managers Rises To 76%: Report

In accordance with a report by Aspen Digital, crypto assets have gotten increasingly popular amongst Asian private wealth managers, as 76% said they’re investing in cryptocurrencies.

Potential Upside Leading To Greater Interest In Crypto

Titled “Asian Private Wealth in Digital Assets,” the report sheds light on the rising adoption of digital assets amongst Asian private wealth managers.

The report surveyed roughly 100 family offices (FOs), high-net-worth individuals (HNIs), and asset managers across Asian countries like Japan, Singapore, and Hong Kong within the second half of 2024.

The proportion of respondents investing in cryptocurrencies has surged to 76% in 2024, up from 58% in 2022, in response to a previous study. Moreover, 18% of respondents plan to speculate in crypto assets shortly.

A staggering 94% of FOs and HNIs are either currently investing or plan to speculate in digital assets. Commenting on the change in attitude toward cryptocurrencies, Elliot Andrews, CEO, Aspen Digital, said:

For the private wealth segment, the conversation has largely modified from whether the asset class is investable, to how much of the portfolio needs to be allocated. Despite only being launched this 12 months, the ETFs are the fastest growing of all time. These have still only been adopted by a small proportion of institutional investors but have added an enormous amount of legitimacy to the asset class.

The approval of Bitcoin (BTC) exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) earlier this 12 months gave the leading digital asset strong regulatory backing, making investors more comfortable adding crypto exposure to their portfolios.

Bitcoin ETFs became the fastest-growing ETFs of all time, with BlackRock’s IBIT amassing $10 billion in assets under management (AUM) in only 49 days. The previous record was held by JPMorgan’s JPEQ, which took 647 days to achieve the identical milestone.

Source: Aspen Digital

In 2024, key areas of interest for personal wealth managers include decentralized finance (DeFi), AI and decentralized physical infrastructure networks (DePIN), and real-world asset tokenization. Notably, non-fungible tokens (NFTs) and crypto as a “store of value” now not rank amongst digital assets’ top areas of interest.

Hopes For A $100,000 Bitcoin By 12 months End

The report also mentions that 31% of respondents predict BTC may surge to at the least $100,000 by the top of 2024, while 10% foresee prices falling below $60,000.

While the $100,000 BTC goal might sound too optimistic – especially considering the digital asset’s recent see-sawing price motion on account of heightened geopolitical uncertainties within the Middle East – several crypto analysts and indicators suggest it is just not optimistic enough.

For instance, crypto analyst Ali Martinez recently pointed to Bitcoin’s “cup and handle” formation, a classic bullish signal that would propel the value between $194,000 and $352,000.

Quite the opposite, a recent report posited that Bitcoin’s four-year cycles – a historically bullish indicator on account of BTC’s halving – may now not be reliable in predicting BTC’s future price trajectory.

Moreover, Bitcoin’s Google search volume has tumbled to recent 2024 lows, questioning the likelihood of any potential BTC rally in Q4 2024. BTC trades at $67,148 at press time, down 0.4% up to now 24 hours.