Despite its volatility over the last two years, the cryptocurrency business continues to grow, pushed in part by the desire of family offices and the investors of Hong Kong and Singapore in diversifying their portfolios with the new asset class.
According to a survey conducted by KPMG China and Aspen Digital and released on October 24, found that the vast majority of family offices (FOs) and HNWIs in Hong Kong and Singapore are investing in crypto assets.
According to the research, 92% of respondents in these areas were interested in investing in cryptocurrencies, with 58% of family offices and high-net-worth individuals currently investing in digital assets and 34% wanting to do so in the future.
As expressed by Yang He, CEO of the cryptocurrency asset management platform Aspen Digital:
“Over the last 18 months, institutional investor interest in digital assets has skyrocketed. For the Asian sector of private wealth management, digital assets constitute a new asset class with prospects unmatched by existing financial products.”
Moreover, Bitcoin (BTC) and Ethereum (ETH) were discovered to be the most popular digital assets, with 100% and 87% of crypto investors purchasing them, while 60% of the questioned respondents were actively investing in non-fungible tokens (NFTs).
However, Paul McSheaffrey, a financial services partner at the auditing and consulting company KPMG China, emphasized the following:
“To boost allocation to digital assets, relevant hedging and derivative products are required so that investors may properly manage risk. The creation of such products outside of popular tokens like as Bitcoin and Ethereum would increase allocation to a broader variety of digital assets.”
In the meanwhile, both Hong Kong and Singapore are competing for the demanding role of the leading crypto sector centre, with one attempting to outperform the other in several areas of interest, such as finance and legislation.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.