More and more wealthy investors are eyeing cryptos to increase their profits. Those in Hong Kong and Singapore are particularly fond of digital assets.
The majority of them are already investing in cryptos
In Asia, high net worth managers and high net worth investors invested heavily in cryptos in the second quarter. This is shown by a study of the Chinese branch of the audit and consultancy firm, KPMG and Aspen Digital. These are investors from Singapore and Hong Kong. To carry out the study, the two companies interviewed 30 wealth managers and high net worth individuals, who manage assets between 10 and 500 million dollars.
In the second quarter, when the survey was conducted, 92% of participants declared their interest in crypto investing. 58% were already investing, particularly in bitcoin (BTC) and 87% in ether (ETH). On the other hand, 34% were preparing to do so. 36% of respondents said institutional interest in digital assets was a key reason to invest. 64% cited high upside potential as another reason. 14% mentioned inflation hedging and 7% currency depreciation.
But starting in the middle of the second quarter, things got heated in the crypto markets. Several ecosystems have gone bankrupt and have taken other players in the value chain with them. KPMG and Aspen suggest that the current volatility has negatively impacted the figures collected. However, the authors say that despite the bear marketthese investors are always keen to inject capital into cryptos.
What is holding Asian investors back
The authors of the study also indicated that the figures collected could have been higher. Investors are mainly slowed down in their momentum towards cryptos by three main obstacles, they specify. These are lack of regulatory clarity (83%), high volatility (50%) and lack of research and evaluation (50%). Other concerns related to taxation and financial reporting (37% and 25%, respectively). There is also the fragmented landscape of digital asset service providers (20%).
But all is not lost, notes Paul McSheaffrey, analyst at KPMG China. “Clear regulations would comfort investors. Many jurisdictions are beginning to license exchanges and brokers that deal in digital assets, which provides greater regulatory certainty and therefore comfort for institutional investors.”did he declare.
Like many wealthy people around the world, Asian mega-riches are eyeing crypto investing. The difficult market conditions do not affect this enthusiasm, although for now, experts believe that they have withdrawn from the market. For KPMG and Aspen Digital, clear industry regulation will drive their investment.
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