According to a recent report by KPMG, more than 90% of family offices and high-net-worth individuals (HNWI) want to invest in digital assets or have already done so. This suggests that the wealthy elite of Hong Kong and Singapore are paying close attention to digital assets.
The report titled “Investing in Digital Assets” was published on October 24 by KPMG China and Aspen Digital, as many as 58% of family offices and HNWI respondents in a recent poll are already investing in digital assets, and 34% “intend to do so.”
The survey included responses from thirty family offices and high-net-worth individuals in Hong Kong and Singapore, with the majority of respondents managing assets in the range of $10 million to $500 million. According to KPMG, the significant adoption of cryptocurrencies among the ultra-wealthy has boosted trust in the industry. This optimism was sparked by the rise in “mainstream institutional interest.” It was also said that institutions have a greater accessibility to digital asset financial products, including those that are regulated.
DBS, the largest bank in Singapore, made an announcement in September that it would be expanding crypto services on its digital exchange (DDEx) to approximately 100,000 wealthy clients who meet the criteria around their income to be classified as accredited investors.
In the meantime, the cryptocurrency exchange Coinhako made an announcement in October stating that they were one of the select few businesses to be granted a licence by the Monetary Authority of Singapore (MAS) to provide services related to digital payment tokens.
However, allocations continue to be relatively low, with the majority of investors devoting less than 5 percent of their portfolio to digital assets, mostly in the form of Bitcoin and stablecoins. According to the respondents, there is still a barrier to entry for investment in the industry due to the volatility of the market, difficulty in proper assessment, and a lack of legislative certainty on digital assets.
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