71% of high net worth individuals have invested in digital assets: Survey
High net worth individuals (HNWI) have embraced cryptocurrencies and other digital assets, with 71% of wealthy individuals investing in digital assets according to a new survey.
Technology consulting company Capgemini released its 2022 World Wealth Report on June 14. It polled 2,973 global HNWIs, with 54% reporting a wealth band ranging from $1 million to $30 million and 46% reporting wealth of $30 million and over.
The survey asked about investment preferences for emerging asset classes such as digital assets, classifying them as cryptocurrencies, related exchange-traded funds (ETFs), non-fungible tokens (NFTs) and metaverse-related products.
Of the roughly one in seven wealthy individuals investing in digital assets, the highest concentration were under 40. More than nine in ten in this age group have invested in digital assets. The younger cohort said cryptocurrencies are their favorite investment, with crypto ETFs and metaverse products also highly desired.
Crypto does not make up the majority of portfolios however and on average, HNWIs have only allocated around 14% into “alternative investments” which includes crypto alongside commodities, currencies private equity and hedge funds.
Capgemini observed, however, the wealth management industry is seeing an influx of investments into digital assets and this has “increased the demand for educational capabilities.”
Nilesh Vaidya, the firm's head of retail wealth management said:
Some firms are already clued into this trend and are wanting the first-mover advantage into this niche sector by launching investment products targeted at the demographic.
Related: Wealth report: As old money procrastinates, young money goes crypto
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