According to a recent survey, Asian wealth managers are avoiding delivering digital asset products.
A survey released on June 6 by consultancy company Accenture found that regulatory uncertainty and significant volatility in digital assets have kept the majority of wealth managers in Asia away from digital assets. 67% of the region’s wealth management organisations had no intention of providing digital assets.
According to Accenture, asset managers are aiming for 60% growth in their portfolios by 2025, which they feel crypto cannot provide at the moment.
Between December 2021 and January 2022, the company conducted two polls that included around 3,200 investors and over 550 financial advisers.
More than 52% of Asian investors own digital assets such as cryptocurrency or crypto investment funds, with another 21% planning to do so by the end of 2022. Several investment managers have also received increasing requests from investors to provide products covering the industry.
Despite the fact that cryptocurrency is the fifth biggest asset class in Asia, wealth management organisations are still hesitant to enter the market. Most Asian economies lack crypto regulation, with countries such as China openly prohibiting it. Others, like India and Singapore, have adopted a more cautious approach to the area, with the former implementing a harmful tax policy to discourage cryptocurrency trade.
This year’s high volatility in crypto has also made trading exceedingly undesirable, with the market experiencing a massive influx of money withdrawals.
According to an Accenture report, 40% of investors prefer to use wealth management businesses for advice rather than go it alone. 33% of surveyed investors make their own investing choices and use businesses to execute transactions. The observed pattern suggests that additional financial guidance from wealth management businesses may lead to investors moving assets with them. This will immediately persuade people to follow the money manager’s advice.
Meanwhile, 46% of investors were satisfied with their main wealth manager. However, over 90% said that their investing goals were met in the previous year. The cryptocurrency market has been more volatile in the last year. According to the survey findings, providing predicted returns would be more difficult than providing guidance to investors.
