Family offices and the ultra-rich of Hong Kong and Singapore are among investors who have expressed interest in diversifying their portfolio of assets with the novel asset class, despite the price fluctuations of digital currencies over the last two years. A report from KPMG says that more than 90% of family offices and wealthy people in Singapore and Hong Kong are either thinking about investing in cryptocurrency or are already doing so.
KPMG China and Aspen Digital published their report “Investing in Digital Assets” on October 24. It discovered that as much as 58% of family offices (FOs) and high-net-worth individuals (HNWIs) of survey participants are already putting money into digital assets and that 34% “plan to do so.” The majority of the 30 Hong Kong and Singaporean family offices and HNWIs surveyed manage assets in the $10 million to $500 million range.
According to KPMG, the widespread adoption of cryptocurrencies by the ultra-wealthy has bolstered confidence in the industry, which has been driven by a rising trend in mainstream institutional interest. In addition, it mentioned that institutions now enjoy greater access to financial products related to digital assets, including regulated products.
In September, DBS, Singapore’s largest bank, announced that it would allow roughly 100,000 of its wealthy clients to access cryptocurrency trading services on its digital exchange (DDEx). In October, Coinhako, a cryptocurrency exchange, announced that they were among a small group of businesses to receive a license from Singapore’s Monetary Authority (MAS) to offer services related to digital payment tokens.
Most investors, however, are still only putting about 5% of their money into digital assets like Bitcoin (BTC), Ethereum (ETH), and stablecoins, per the report.
