According to the results of a study compiled by financial advisory firm deVere Group, 82% of clients with £1 million to £5 million in investable assets have sought advice on cryptocurrencies.
In a shared press release, Nigel Green, CEO and founder of deVere Group, said, “In 2022, the crypto-currency market had its worst performance since 2018, with bitcoin, the market’s headline-grabbing leader, dropping about 75 percent over the course of the year.“
“The price drops came as investors reduced their exposure to risky assets, including stocks and crypto, amid heightened concerns about inflation and slowing economic growth.“
“Yet, in this so-called “crypto winter,” HNWs routinely sought advice from their financial advisors about including digital currencies in their portfolios.“
Nigel Green continues: “Interestingly, this generally more conservative group was not deterred by the bear market and adverse market conditions. Instead, they were looking to start including or increasing their exposure to crypto-currencies.“
“This suggests that these wealthy customers are increasingly aware of the inherent characteristics of crypto-currencies like bitcoin, which have the core values of being digital, global, borderless, decentralized, and unbreakable.“
“Wealthy investors understand that digital currencies are the future of money, and they don’t want to stay in the past.“
Many of these HNWs interviewed will also have seen a steady increase in interest expressed by institutional investors, including the Wall Street giants, who bring more capital, influence and confidence to the sector.
Interest in crypto-currencies will continue to grow
In recent months, JPMorgan, along with many other large historical financial institutions, including Fidelity, BlackRock and New York Bank Mellon, have also begun offering crypto-currency related services to their clients.
The CEO of deVere believes that this momentum of interest is set to grow, as ” the crypto winter ” of 2022 is thawing. “Bitcoin is poised to have its best January since 2013, on hopes that inflation has peaked, monetary policies are becoming more supportive, and the various crises in the crypto-currency sector, including high-profile bankruptcies, are now in the rearview mirror“, he explains.
“The world’s largest crypto-currency is up more than 40% year-to-date, and that won’t go unnoticed by HNW clients and others who want to build wealth for the future.“
Nigel Green concludes, “If HNWs were to express so much interest in the 2022 bear market, as market conditions steadily improve, they will be among the first to capitalize on the coming bull market.“