RETAIL REPORT: 2/3 of Wealthy Want Crypto in Portfolios05.15.2019 By John D'Antona Editor, Traders Magazine
So, who wants to buy crypto?
Everybody? Maybe. But according to new research from deVere Group the wealthy are looking to increase their cryptocurrency exposure. The firm said that more than two-thirds of high-net-worth individuals will be invested in cryptocurrencies in the next three years.
Carried out by deVere Group, a proprietary survey revealed that 68% of poll participants are now already invested in or will make investments in cryptocurrencies, such as Bitcoin, Ethereum and XRP, before the end of 2022.
The research was based on responses from over 700 clients who currently reside in the U.S., the UK, Australia, the UAE, Japan, Qatar, Switzerland, Mexico, Hong Kong, Spain, France, Germany and South Africa.
High net worth is classified in this context as having more than £1m (or equivalent) in investable assets.
“There is growing, universal acceptance that cryptocurrencies are the future of money – and the future is now,” Nigel Green, founder and CEO of deVere Group told Traders Magazine in a phone call. “High net worth individuals are not prepared to miss out on this and are rebalancing their investment portfolios towards these digital assets.”
Green added that crypto is to money what Amazon was to retail. “Those surveyed clearly will not want to be the last one on the boat.”
Besides FOMO – the ‘Fear Of Missing Out’- Green believes there are five main drivers for high-net-worth individuals’ surging interest in cryptocurrencies.
“First, cryptocurrencies are borderless, making them perfectly suited to an ever globalized world of commerce, trade, and people,” he began. “Second, they are digital, making them perfectly suited for the increasing digitalization of our world, which is often called the fourth industrial revolution. Third, they provide solutions for real-life issues, including making international remittances more efficient, and help bank the world’s estimated two billion ‘unbanked’ population. Fourth, demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations. And fifth, institutional investors are coming off the sidelines and moving into cryptocurrencies, bringing their institutional capital and institutional expertise to the crypto market.”
The deVere CEO’s optimism comes as Bitcoin, the world’s dominant cryptocurrency, continues to register new highs, reinforcing the view put forward by its recent upswing towards bullish territory.
“Once this confidence is in place, the sky is the limit for cryptocurrencies, which are increasingly accepted by both retail and institutional investors as the future of money,” he said. “The global poll underscores a justified international surge in crypto-optimism.”
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