Eight out of ten high net worth millionaires have asked their financial advisors to include cryptocurrencies in their portfolios.
Advice on crypto
According to the results of a study compiled by financial advisory firm deVere Group, 82% of clients with between £1m and £5m in investable assets sought crypto advice.
In 2022, the crypto market delivered its worst performance since 2018. Bitcoin, the leading market leader, fell about 75% that year. The price drops occurred as investors reduced their exposure to risky assets, including stocks and crypto. Investors did this because of heightened concerns about inflation and slower economic growth. But during the so-called “crypto winter,” high net worth individuals consistently sought advice from their financial advisors to include crypto in their portfolios.
Striking timing
It is interesting that millionaires are so interested in investing in crypto. This is because they are normally quite conservative investors. The fact that crypto prices have fallen sharply has not deterred the wealthy investors either.
This suggests that these high net worth clients are increasingly aware of the positive attributes of cryptocurrencies such as Bitcoin, which has the core values of being digital, global, borderless, decentralized and tamper resistant. Wealthy investors may well understand that cryptocurrencies are the future of money.
In addition, many of the high net worth individuals surveyed are seeing a steady rise in institutional investor interest in crypto.
Interest in crypto is growing
This growing interest is also reflected in JPMorgan and many other major financial institutions, including Fidelity, BlackRock and New York Bank Mellon. These companies all started offering crypto related services to their customers.
DeVere CEO Nigel Green believes this momentum of interest will continue to grow as the 2022 “crypto winter” thaws.
Bitcoin is on track to experience its best January since 2013. This is based on hopes that inflation has peaked, monetary policy becomes more favorable and the crypto industry’s various crises, including high-profile bankruptcies, are over.
— Nigel Green
Bitcoin has risen by more than 40% since the turn of the year and this has not gone unnoticed by high net worth individuals. Nigel Green therefore concludes:
If high net worth individuals were to show such tremendous interest in the 2022 bear market, while market conditions are steadily improving, they will be among the first to benefit from the impending bull run.