A recent survey from KPMG suggests that over 90% of family offices and high-net-worth individuals (HNWI) are either interested in investing in the digital assets field or have already done so. This suggests that Hong Kong and Singapore’s wealthy elite are looking at digital assets with zeal.
Up to 58% of family offices and HNWI respondents to a recent poll are already investing in digital assets, and 34% “intend to do so,” according to a research published on October 24 by KPMG China and Aspen Digital titled “Investing in Digital Assets.”
Around 30 family offices and HNWIs in Hong Kong and Singapore participated in the poll, with the majority of respondents managing assets between $10 million and $500 million.
Big support from the ultra-rich
According to KPMG, the significant adoption of cryptocurrencies by the ultra-wealthy has boosted industry confidence due to a rise in “mainstream institutional attention.”
Additionally, it was mentioned that institutions now have easier access to financial instruments involving digital assets, including regulated ones.
Assuring adherence to the financial authorities’ view that crypto assets are not suitable for retail investors, Singapore’s largest bank, DBS, announced in September that it was expanding crypto services on its digital exchange (DDEx) to approximately 100,000 wealthy clients who meet the criteria around their income to be classified as accredited investors.
The CEO of the cryptocurrency asset management company Aspen Digital, Yang He, explained these findings as follows,
“Over the last 18 months, we have seen a huge increase in institutional investor interest in digital assets. For the Asian private wealth management industry, digital assets represent an emerging asset class with opportunities that are unrivaled within other financial products.”
A barrier to investment in the sector, according to respondents, is market volatility, challenges with correct valuation, and a lack of regulatory certainty on digital assets.
The report’s authors said that because digital assets are still relatively new, there is considerable hesitation among FOs and HNWIs to engage in the industry, particularly regarding regulation and valuation. However, KPMG pointed out that the two nations’ regulatory clarity may be improving.
Additionally, it was discovered that Bitcoin (BTC), which is purchased by 100% of cryptocurrency investors, and Ethereum (ETH), which is purchased by 87%, are the most popular digital assets. In contrast, 60% of the respondents who were surveyed are now investing in non-fungible tokens (NFTs).
Larger expansion expected?
Additionally, Hong Kong’s securities regulator has declared its intention to review present regulations for cryptocurrency trading and to permit regular investors to directly invest in virtual assets.
The Monetary Authority of Singapore (MAS) has increased access to cryptocurrency trading for authorized investors, and numerous exchanges have received preliminary clearance to offer services related to digital payment tokens in the city-state.
Diogo Mónica, co-founder and president of Anchorage Digital, stated earlier this month that Singapore was chosen as a “jump point” into the larger Asian market because of its robust regulatory framework.
