Accenture, in its latest research, highlighted that 52% of affluent investors in Asia had some form of digital asset, including cryptocurrencies, crypto funds, and stablecoins, etc., in Q1 of 2022. It made up 7% of the investors’ portfolios.
This makes crypto assets the fifth-largest asset class for investors in Asia. Investors have allocated more to cryptocurrency than to foreign currencies, commodities, and collectibles. In some cases, as per the report, it was on par with or exceeded the amount invested in private equity, venture capital, and hedge funds.
Accenture conducted the survey with more than 3,200 clients across China, Hong Kong, India, Japan, Indonesia, Singapore, Malaysia, and Thailand. It describes an affluent investor as anyone that manages investable assets of USD 100,000 – USD 1 million. The report revealed that investors in Thailand and Indonesia had the largest percentage of digital assets in their portfolios. Moreover, it said that 21% of investors are expected to invest in digital assets by 2022 end. This means that 73% of wealthy Asian investors could hold a digital asset by the year-end. Accenture outlined that digital assets represent a rare, clear industry white space that has significant business opportunities.
The consultancy firm found that wealth management firms have been slow to board the crypto train, with 67% having no plans to offer digital asset products or services. Accenture’s report said digital assets, for wealth management firms, are a USD 54 billion revenue opportunity. And most are ignoring it. Wealth management firms attributed their decision to a lack of belief and understanding of digital assets and the operational complexity of launching a digital asset offering. As such, they prioritize other initiatives.
Accenture determined that the lack of engagement by firms means that investors have been forced to get their financial advice about crypto from unreliable sources.