Private wealth managers in Asia are increasingly showing interest in crypto assets, with some predicting that Bitcoin could reach $100,000 by the end of the year.
According to a report by Aspen Digital, 76% of family offices and high-net-worth individuals based in Asia are investing in cryptocurrencies, up from around 58% in 2022.
While cryptocurrencies stand out as an alternative investment tool for private wealth in Asia, the rate of those planning to invest in this asset class in the coming period was recorded as 16%.
These findings come from a survey conducted in the second half of 2023. Most respondents had between $10 million and $500 million in assets under management, with 20% of respondents indicating they managed $500 million or more.
The report noted contributions from institutions such as the Hong Kong Family Office Association and SBI Digital Markets.
The rich are closely following two altcoin groups
According to the survey, decentralized finance (DeFi) continues to be a significant area of interest for investors. 67% of respondents expressed interest in DeFi projects, 61% said they were considering investing in artificial intelligence and decentralized physical infrastructure networks (DePin), and 50% said they were considering investing in blockchain infrastructure.
The report also highlighted the increasing demand for institutional custody of cryptocurrencies. However, the private wealth sector remains optimistic about cryptocurrencies in the long term. 31% of respondents said they expect Bitcoin to reach at least $100,000 in the fourth quarter of the year.
Investors said that interest rate cuts, US presidential election results and positive developments in the crypto sector could provide an increase in the market.
Despite this optimism, however, the majority of private wealth managers still allocate less than 5% of their portfolios to digital assets.
Still, 30% of respondents indicated that they intend to increase their crypto portfolios in the future. In particular, following the launch of spot-based Bitcoin and Ethereum ETFs, some high-net-worth individuals and family offices said they have increased their digital asset portfolios from less than 5% to more than 10%.
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