Asian Private Wealth Sees Crypto Boom, Bitcoin Expected to Hit $100K by Year-End

• Estimates from Aspen Digital state that 76% of private wealth managers in Asia have ventured into the cryptocurrency space, while another 16% are still considering investments.
• The primary motivation for this shift is the potential for higher returns, but an increasing number of respondents are also attracted to the diversification benefit.

Aspen Digital, an innovative digital asset technology platform that enables wealth managers to offer their clients access to the emerging asset class noted in a recent report that a growing cohort of private wealth managers in Asia is making strides into the crypto landscape. Private wealth managers are diving into the crypto landscape, spurred by optimistic predictions that Bitcoin (BTC) could reach $100,000 by the end of the year. 

GM, check out our latest #research 'Asian Private Wealth in Digital Assets', with contributors #SBI Digital Markets & Family Office Association Hong Kong!

Our report features the state of private wealth's interest in #crypto and insights from leaders like @CryptoHayes

— Aspen Digital (@AspenDigitalAMP) October 17, 2024

According to the report, 76% of private wealth in Asia has already made investments in digital assets with an additional 16% planning on their future investments. Asia is one of the largest crypto economies worldwide, accounting for nearly 10% of on-chain value received between July 2023 and June 2024. A list of factors from concerns about TradFi to the struggling real estate market has made crypto a popular asset class in the region, even in areas with strict regulations. 

Asia Leads the Charge in Crypto Adoption

A growing number of investors are recognizing the merits of diversification, this is mainly because digital assets move independently of traditional financial assets like stocks and bonds, they can offer protection from inflation-induced market downturns. Based on a survey of over 100 family offices,high-net-worth individuals (HNWIs), and asset managers across Asian countries like Hong Kong, Singapore, Japan, and more.

Interest in decentralized finance (DeFi) is particularly pronounced, with 67% of respondents keen on DeFi developments. Following closely are interests in artificial intelligence (61%) and decentralized physical infrastructure networks (DePin) (61%), blockchain infrastructure (50%), and real-world asset (RWA) tokenization (47%).

These developments indicate a gradual but notable change in attitude among private wealth managers. Despite this, private wealth managers still allocate under 5% of their portfolios to digital assets. As stated in the report,  several key barriers to widespread adoption include the fragmented digital asset landscape, regulatory uncertainties, and subpar user experiences.

However, 30% of those surveyed expressed optimism about increasing their exposure in the future. Additionally, some high-net-worth individuals and family offices have already raised their investments from below 5% to over 10% in 2024, motivated by the recent launch of spot-based Bitcoin and Ethereum ETFs and a desire to tap into the broader crypto market.

Since the approval of Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission, there has been an increased interest in digital assets among Asian investors. This trend mirrors a broader global shift in the investment landscape, as noted in the latest Global Crypto Hedge Fund Report from AIMA and PwC. Spot Bitcoin ETFs began trading in the U.S. back in January 2024, and by April, spot Bitcoin and Ether ETFs made their debut in Hong Kong.

The emergence of these ETFs has made it easier for investors to dip their toes into the crypto market, signaling a growing acceptance and appetite for digital assets in Asia and beyond.