82% of HNWs sought advice on crypto in 2022
deVere has carried out a recent survey which revealed 82% of high net worth (HNW) clients – with between £1m and £5m of investable assets – have sought advice on crypto over the past year.
The cryptocurrency market registered its worst performance since 2018 last year, with Bitcoin, the world’s largest cryptocurrency by market cap, declining around 75% over the 12 months.
The price falls resulted from investors reducing exposure to risk-on assets, including stocks and crypto, as inflation fears soared and economic growth decelerated.
Yet despite this, HNWs were seeking advice about including cryptocurrencies in their portfolios.
As I was quoted by City AM, Cointelegraph, Investing.com, Bitcoinist, African Eye Report, Finbold, and Tech Telegraph, amongst other media, rather than being put off by the bear market and unfavourable market conditions, these clients were looking to start including or increasing their exposure to digital currencies.
This indicates that they are becoming more aware of the intrinsic traits of crypto, such as Bitcoin, which has the fundamental values of being digital, global, borderless, decentralized and tamper-proof.
Wealthy investors recognise that cryptocurrencies are the future, and they don’t want to be left behind.
In addition, many of the HNW clients polled will have witnessed an ongoing rise in interest from institutional investors, including Wall Street giants, who bring further capital, influence and confidence to the sector.
Indeed, over the past few months, JPMorgan, along with other major legacy financial institutions, including Fidelity, BlackRock and New York Bank Mellon, have started to provide crypto-related services to clients.
And I firmly believe this momentum of interest will increase even more as the 2022 crypto winter comes to an end.
Bitcoin is on course for its best January since 2013 on hopes inflation has reached a peak, monetary policies are more beneficial, and the crypto crises we’ve seen over the last year are now behind us.
Since the beginning of the year, Bitcoin has been up over 40%, which certainly won’t be overlooked by HNW clients and others who want to build wealth for the future.
As HNWs were showing immense interest during last year’s bear market, as market conditions improve, they’ll be first to make the most of the upcoming bull run.
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