According to a report by Aspen Digital, crypto assets are increasingly popular among Asian private wealth managers, as 76% said they invest in cryptocurrencies.
Potentially Rising Leads to Big Interest in Crypto
Titled “Asian Private Wealth in Digital Assets,” the report sheds light on the growing adoption of digital assets among Asian private wealth managers.
The report surveyed nearly 100 family offices (FOs), high net worth individuals (HNIs), and asset managers across Asian countries such as Japan, Singapore, and Hong Kong in the second half of 2024.
The proportion of respondents investing in cryptocurrencies increased to 76% in 2024, up from 58% in 2022, according to previous research. Additionally, 18% of respondents plan to invest in cryptocurrencies in the near future.
A staggering 94% of FOs and HNIs are currently investing or planning to invest in digital assets. Commenting on the changing attitude towards cryptocurrencies, Elliot Andrews, CEO, Aspen Digital, said:
In the private wealth sector, the discussion has shifted significantly from whether an asset class is investable, to how much of a portfolio should be allocated. Although only launched this year, ETFs are growing faster than ever. These are still only accepted by a minority of institutional investors but have added a huge amount of legitimacy to the asset class.
I authorization of Bitcoin (BTC) exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) earlier this year provided strong regulatory support for the leading digital asset, making investors more comfortable with adding crypto exposure to their portfolios.
Bitcoin ETFs have become the fastest growing ETFs of all time, with BlackRock’s IBIT amassing $10 billion under management (AUM) in just 49 days. The previous record was held by JPMorgan’s JPEQ, which took 647 days to reach the same milestone.
In 2024, key areas of interest for private wealth managers include decentralized finance (DeFi), AI and decentralized infrastructure networks (DePIN), and real-world asset tokens. Notably, non-few tokens (NFTs) and crypto as a “store of value” no longer rank among the top digital assets of interest.
Hopefully With $100,000 Of Bitcoin By The End Of The Year
The report also states that 31% of respondents predict that BTC may reach at least $100,000 by the end of 2024, while 10% see prices falling below $60,000.
While BTC’s target of $100,000 may sound overly optimistic – especially considering the digital asset’s recent fortunes. saw-saw price action due to high geopolitical uncertainty in the Middle East – several crypto analysts and indicators suggest that it is not optimistic enough.
For example, crypto analyst Ali Martinez recently he pointed in Bitcoin’s “cup and handle” formation, a classic bullish signal that could propel the price between $194,000 and $352,000.
On the contrary, the latest report standing that Bitcoin’s four-year cycles – a historically effective indicator due to BTC’s decline – may no longer be reliable in predicting BTC’s future price trajectory.
Additionally, Google’s Bitcoin search volume has he collapsed to new 2024 lows, questioning the possibility of any potential BTC rally in Q4 2024. BTC is trading at $67,148 at press time, down 0.4% in the last 24 hours.
Featured image from Unsplash.com, Charts from Aspen Digital and TradingView.com
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