Individuals with a high net worth have taken to cryptocurrencies and digital assets as part of their portfolio holdings, according to data from a new survey.
According to a report from a survey conducted by technology consulting firm Capgemini, 71% of wealthy individuals are adding digital assets into their portfolios.
The 2022 version of Capgemini’s “World Wealth Report” report conducted its survey, polling almost 3000 hit net worth individuals about their various investments. According to the research, 54% of the wealth bracket sit between $1 million and $30 million and the remaining 46% sit with a net wealth of over $30 million. Of these, nearly one in seven investors are currently invested in some form of digital currency. This asset class takes assets such as cryptocurrencies, non-fungible tokens (NFTs), exchange-traded funds (ETFs), and assets from and within the metaverse space into classification.
Most investors taking digital assets into their portfolio are under the age of 40 with nearly 90% of this age bracket having invested in some form of the digital asset. According to the research, cryptocurrencies sit as the favored digital asset in this age bracket with ETFs and metaverse-related assets also important to add to their portfolios.
According to the head of retail management of the firm, Nilesh Vaidya the new investment opportunities have a new impact on the way traditional management is operating and investment firms need to jump on the trend to stay up to date:
“The influx of new investment avenues such as sustainable investing and digital assets is having a crucial impact on the wealth management industry. Wealth management firms must prioritize providing timely education around this trend to retain their customers.”
Some firms are already clued into this trend and are wanting the first-mover advantage in this niche sector by launching investment products targeted at the demographic.
“Our survey reveals that 70% of HNWIs {high net worth individuals} have invested in digital assets, emphasizing the need for firms to create a diversified portfolio of digital offers.“