6 in 10 wealthy Asians "will increase their virtual asset allocation"

Source
YM Lee

Summary

  • 60%% of high-net-worth individuals in the Asia region said they plan to increase their virtual asset holdings within the next 2–5 years.
  • 87%% of respondents already hold virtual assets, and the average portfolio allocation was reported to be about 17%%.
  • 90%% of investors evaluated virtual assets as an "important element in long-term wealth preservation and family succession strategies."
Photo=Shutterstock
Photo=Shutterstock

A survey found that high-net-worth individuals in the Asia region plan to increase their holdings of virtual assets (cryptocurrencies) over the next few years. The analysis showed that virtual assets have already taken a place in many portfolios and are being seen as a key element in long-term wealth preservation and wealth transfer strategies.

On the 11th (local time), Cointelegraph reported that 60% of investors who responded to Sygnum's Asia-Pacific (APAC) high-net-worth report said they plan to increase their virtual asset holdings within the next 2–5 years. The survey was conducted among 270 investors with at least $1 million in investable assets across 10 countries, including Singapore, Hong Kong, Indonesia and South Korea.

According to the report, 87% of respondents already hold virtual assets, and about half have allocated more than 10% of their portfolio to virtual assets. The overall average allocation was about 17%. In addition, 87% of investors said they would request virtual asset services from private banks or advisory firms if services could be provided through regulated partners.

From a long-term asset management perspective, preference for virtual assets is also strengthening. Ninety percent of respondents evaluated virtual assets as "an important element in long-term wealth preservation and family succession strategies" and said they do not view them as purely speculative assets. Gerald Goh, Sygnum co-founder and APAC head, said, "Virtual assets have already become part of Asia's private asset ecosystem." He explained, "Despite short-term macro uncertainty, demand for institutional-grade products and portfolio diversification strategies is expanding adoption."

The report stated that 80% of actively investing high-net-worth individuals hold major protocol tokens such as Bitcoin (BTC), Ether (ETH) and Solana (SOL). The most common reason for investment was "portfolio diversification," chosen by 56% of respondents. Sygnum described the average 17% allocation as "a shift to long-term asset management strategies away from the 2017-style short-term profit-seeking mentality," calling them "investors looking 10 to 20 years ahead."

Asia's regulatory environment also appears to have influenced increased institutional participation. Goh said that the Monetary Authority of Singapore (MAS)'s regulations "may seem strict but in fact provide clear standards and are creating an institutional-grade market." He added that Hong Kong is also adjusting its framework in a similar direction.

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YM Lee

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