Amidst the growing popularity of digital assets, a report from Aspen Digital shows growing traction in the Asian private wealth sector. Increasing interest in this region has opened a lucrative market for digital assets like decentralized finance (DeFi), artificial intelligence (AI), and decentralized physical infrastructure networks (DePin). A recent survey report from Hong Kong-based wealth management platform Aspen Digital shows that 76% of the respondents were already investing, while another 18% were planning to invest in digital assets.
Aspen’s 2024 report shows the increase in investors’ interest in digital assets. As per the report, 76% of the respondents in 2024 were investing in digital assets compared to 58% of respondents investing in 2022. Meanwhile, 18% in 2024 were planning to invest compared to 34% in 2022.
Despite increasing interest in digital assets within the Asian private wealth sector, 70%, of the respondents already invested in crypto, held less than 5% of their portfolio in 2024, compared to 60% in 2022. This highlights that most private wealth management clients and institutions appeared “cautious” about this emerging asset class.
The latest survey found that only 16% of respondents had invested more than 10% of their portfolio in digital assets, down significantly from 33% in 2022. Additionally, 14% had allocated between 5% and 10% to this asset class, compared to 7% in 2022.
The survey was conducted among 80 high-net-worth individuals (HNWIs) and family offices in Asia with AUM ranging from approximately $10 million to $500 million.
The 2024 survey indicated that Decentralized Finance (DeFi) is the most popular investment choice among respondents, followed by DePin and Artificial Intelligence (AI). Specifically, 67% of participants expressed interest in DeFi, while 61% favored Decentralized Physical Infrastructure Network and AI. Moreover, blockchain infrastructure was the choice of 50% of respondents, while real-world asset tokenization was preferred by 47% of the respondents.
Aspen Digital noted that “very few respondents in our 2024 survey are interested in the store of wealth narrative,” referring to financial assets that are expected to maintain or value appreciation over time. This suggests that investors are more focused on the potential for utility and innovation within the digital asset space, rather than solely on capital appreciation.
The launch of spot Bitcoin exchange-traded funds (ETFs) has sparked a surge in interest in digital assets among Asian investors. A recent survey found that 53% of respondents have increased their exposure to cryptocurrencies through funds or ETFs.
This trend mirrors a broader global shift towards digital assets, as evidenced by the findings of the Global Crypto Hedge Fund Report by AIMA and PwC. The report surveyed nearly 100 hedge funds across six regions managing a combined $124.5 billion and revealed that crypto exposure among these funds rose from 29% in 2023 to 47% in 2024.
The growing appetite for digital assets is driven by factors such as increased regulatory clarity and the introduction of new investment vehicles. Spot Bitcoin ETFs began trading in the United States in January 2024, while spot Bitcoin and Ether ETFs were launched in Hong Kong in April.
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