According to a report According to Aspen Digital, crypto assets are becoming increasingly popular among Asian private wealth managers as 76% said they are investing in cryptocurrencies.
Possible advantages that will lead to increased interest in cryptocurrencies
Titled “Asian Private Wealth in Digital Assets,” the report sheds light on the growing adoption of digital assets among Asian private wealth managers.
The report surveyed approximately 100 family offices (FOs), high net worth individuals (HNIs) and asset managers in Asian countries such as Japan, Singapore and Hong Kong in the second half of 2024.
The proportion of respondents investing in cryptocurrencies increased to 76% in 2024, up from 58% in 2022, according to a previous study. Additionally, 18% of respondents plan to invest in crypto assets soon.
A staggering 94% of FOs and HNIs are currently investing or planning to invest in digital assets. Commenting on the change in attitude towards cryptocurrencies, Elliot Andrews, CEO of Aspen Digital, said:
For the private wealth segment, the conversation has largely shifted from whether the asset class is investable to how much of the portfolio should be allocated. Even though they were just launched this year, ETFs are the fastest growing of all time. These have still only been adopted by a small proportion of institutional investors, but have added enormous legitimacy to the asset class.
He approval of bitcoin (btc) exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) earlier this year gave the leading digital asset strong regulatory backing, making it Investors were more comfortable adding cryptocurrency exposure to their portfolios.
bitcoin ETFs became the fastest-growing ETFs of all time, with BlackRock's IBIT accumulating $10 billion in assets under management (AUM) in just 49 days. The previous record was held by JPMorgan's JPEQ, which took 647 days to reach the same milestone.
In 2024, key areas of interest for private wealth managers include decentralized finance (DeFi), artificial intelligence and decentralized physical infrastructure networks (DePIN), and tokenization of real-world assets. In particular, non-fungible tokens (nfts) and cryptocurrencies as a “store of value” are no longer among the main areas of interest for digital assets.
Hopes for a $100,000 bitcoin by the end of the year
The report also mentions that 31% of respondents predict that btc could rise to at least $100,000 by the end of 2024, while 10% predict that prices will fall below $60,000.
While btc's target of $100,000 may seem overly optimistic, especially considering the recent rocker The price action is due to rising geopolitical uncertainties in the Middle East – several analysts and crypto indicators suggest it is not bullish enough.
For example, cryptanalyst Ali Martínez recently pointed to bitcoin's “cup and handle” formation, a classic bullish signal that could push the price between $194,000 and $352,000.
In contrast, a recent report postulate that bitcoin's four-year cycles (a historically bullish indicator due to the btc halving) may no longer be reliable in predicting the future path of btc price.
Furthermore, the volume of bitcoin searches on Google has fell to new 2024 lows, questioning the likelihood of any potential btc rally in Q4 2024. btc is trading at $67,148 at the time of publication, down 0.4% in the last 24 hours.
Featured image from Unsplash.com, charts from Aspen Digital and TradingView.com
