Analysts at audit firm KPMG reported that 58% of family offices and high net worth investors in Hong Kong and Singapore intend to invest in cryptocurrencies.
According to a KPMG report, the widespread adoption of digital assets among wealthy investors has increased confidence in this sector of the economy. Institutional investors now have greater access to digital asset financial products, including regulated products.
Despite the interest of large investors in digital assets, allocations in cryptocurrencies remain relatively small. Most institutional investors allocate less than 5% of their portfolio to cryptocurrencies. Mostly among millionaires, bitcoin is in demand.
The KPMG survey surveyed 30 high net worth family offices and investors in Hong Kong and Singapore. Respondents managing assets ranging from $10 million to $500 million noted market volatility and a lack of clarity on digital asset regulation.
“Because digital assets are relatively new, there is still some uncertainty about investing in the sector among family offices and high net worth investors, especially with regards to regulation and valuation,” the report says.
However, analysts expect clearer regulation in Hong Kong and Singapore. Thus, by March 2024, all virtual asset service providers (VASPs) in Hong Kong will have to apply for a license. Singapore is also planning to expand its rules on cryptocurrencies.
Recently, the Hong Kong Securities and Futures Commission (SFC) reported that it is considering allowing private investors to invest in cryptocurrencies.
Source: Bits
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