Cryptocurrency investment is set to see a significant rise among high-net-worth individuals over the next three years, according to survey results published today.
An extensive poll by financial advisory organisation deVere Group saw over 700 individuals with assets over £1m from across the world queried on their cryptocurrency investment plans.
It found that 68% either already had invested in cryptocurrencies or were planning to by the end of 2022. This included investments in Bitcoin, Ethereum and XRP.
The news signals that cryptocurrencies – which have previously been dismissed as too volatile and uncertain for many high-end investors – are now being recognised as a valuable investment area.
“The research shows that wealthy individuals are increasingly seeking exposure to cryptocurrencies,” said Nigel Green, founder and CEO of deVere Group.
“There is growing, universal acceptance that cryptocurrencies are the future of money – and the future is now. High net worth individuals are not prepared to miss out on this and are rebalancing their investment portfolios towards these digital assets.
“Crypto is to money what Amazon was to retail. Those surveyed clearly will not want to be the last one on the boat.”
Cryptocurrency investment appeal among high-net-worth individuals
Those surveyed are based in a wide range of countries, covering the US, the UK, Australia, the UAE, Japan, Qatar, Switzerland, Mexico, Hong Kong, Spain, France, Germany and South Africa.
Such individuals often live a global lifestyle, and according to Green, the lack of borders on cryptocurrencies is among the reasons for their appeal to high-net-worth individuals.
“Cryptocurrencies are borderless, making them perfectly suited to an ever globalised world of commerce, trade and people,” he said.
He also identified four other drivers of cryptocurrency investment for the group, including the rise in younger high-net-worth investors and the increasingly digital nature of the world economy.
He also argued that cryptocurrencies resolve many current issues, providing increased investment potential.
“They provide solutions for real-life issues, including making international remittances more efficient, and help bank the world’s estimated two billion ‘unbanked’ population,” said Green.
“And fifth, institutional investors are coming off the sidelines and moving into cryptocurrencies, bringing their institutional capital and institutional expertise to the crypto market.”