Among Affluent Asian Investors, 52% Hold Crypto, Survey Finds

Wealthy Asian investors allocated 7% of their portfolio to digital assets, more than forex, commodities or collectibles, Accenture found

article-image

Source: Shutterstock

share

key takeaways

  • 52% of affluent Asians held crypto in Q1 2022, but 67% of wealth managers have no plans to offer related services, an Accenture survey found
  • Investors in Indonesia and Thailand had the largest percentage of digital asset allocation compared to peers

As investors grapple with seismic economic shifts such as soaring inflation and rising cost of living, more are turning to investments aiming to insulate their wealth. According to new research by Accenture, 52% of well-to-do Asian investors held digital assets — including cryptocurrencies, tokenized assets and crypto funds — in the first quarter of 2022.

The study found digital assets make up 7% of these investors’ portfolios, making it the fifth-largest asset class in Asia. That means it receives a greater share of investments than foreign currencies, commodities or collectibles in the region.

Equities, fixed income, cash and real estate have a more hefty weighting compared to digital assets in their portfolios, the research showed.

A further 21% are expected to enter the asset class by the end of 2022, suggesting that as much as 73% of affluent Asian investors would hold digital assets by then. 

Asia Affluent Investor Survey, Q1 2022; Source: Accenture

Accenture said about 3,200 consumers responded to the survey, having investable assets ranging from at least $100,000 to over $5 million. They were from mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore and Thailand. Investors in Indonesia and Thailand had the largest allocation to digital assets compared to their peers as of the first quarter of 2022.

Although the key statistic suggests a large chunk of Asian investors want services related to digital assets, the study found that 67% of wealth management firms aren’t planning to dive into it just yet.

Wealth managers remain cautious

Hesitancy due to unclear regulation is among the factors holding back wealth managers. They prefer to either maintain a wait-and-see approach, not fully believing in the potential of the asset class, or they anticipate complexities due to varying regulatory and operating models. 

“We would need to be able to provide an informed view on key crypto coins, which requires specialized research capabilities,” said Sacha Walker, head of strategy and business operations for the Asia-Pacific region at Julius Baer. 

“In addition, we are currently exploring a compliant offering for suitable clients. This entails educating and training both relationship managers and clients on the risks, suitability and mechanics of digital assets.”

A downside to wealth management firms not offering digital asset services is it forces clients to seek advisory information online, which could provide far less reliable, according to Accenture.

The firm estimates that digital assets are a $54 billion market opportunity in Asia, of which $40 billion stem from transaction fees. The rest is split between advisory and custody fees.

A similar survey conducted by Gemini earlier this year shows about 40% of crypto owners around the world first bought digital assets in 2021. It found crypto ownership was the highest in Brazil and Indonesia.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

👨‍⚖️ SBF’s courtroom sequel: Plus, Coinbase’s legal loss was DeFi’s gain

article-image

Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago