A new report from Aspen Digital shows that 76% of Asia's private wealth is invested in crypto, up sharply from 2022, thanks to regulatory clarity and ETF launches.

According to a new report published by Aspen Digital, a digital asset investment and advisory firm, the cryptocurrency market is attracting increasing interest from private wealth investors in Asia. Specifically, the report estimates that 76% of private wealth in the region is already involved in the market, and that number is expected to continue to increase with another 18% planning to invest in the future.

The growth marks a significant improvement from 2022, when Aspen Digital conducted a similar survey in Hong Kong and found that only 58% of respondents had invested in crypto. The latest report was based on a survey of 80 family offices and high-net-worth individuals (HNWI) across Asia, mostly managing assets between $10 million and $500 million.

Shift in blockchain interest in Asia. Source: Aspen Digital Investment demand surges thanks to ETFs and clearer regulations

While the majority of investors (70%) currently allocate less than 5% of their portfolios to digital assets, some have begun to increase this to over 10% in 2024. The increase is driven by a number of factors, including the approval of spot Bitcoin exchange-traded funds (ETFs) in the US and Hong Kong, as well as positive signals about a clearer regulatory framework for the cryptocurrency market.

Aspen Digital's report found that 53% of investors surveyed accessed the cryptocurrency market through funds or ETFs. A Bitcoin spot ETF began trading in the US in January 2024, while a Bitcoin and Ether spot ETF launched in Hong Kong in April. The emergence of professionally managed investment products has helped lower the barrier to entry for traditional investors.

The trend is also reflected in the Global Crypto Hedge Fund Report by AIMA and PwC. Their survey of nearly 100 hedge funds across six regions, managing $124.5 billion in assets, found that exposure to cryptocurrencies increased from 29% in 2023 to 47% in 2024. The funds cited regulatory clarity and the launch of crypto ETFs in the US and Asia as key factors driving the shift.

In addition, the Aspen Digital report also showed that Asian investors are increasingly interested in blockchain technology applications, especially decentralized finance (DeFi), artificial intelligence (AI), and decentralized physical infrastructure networks (DePIN). Two-thirds of respondents expressed interest in DeFi, while 61% said they were interested in AI and DePIN.

Optimism about Bitcoin's prospects is also a notable factor. The report indicates that 31% of investors expect Bitcoin's price to reach $100,000 by the end of 2024.