A new report published on Tuesday by French IT services and consulting multinational Capgemini suggests that 71% of 2,973 high net worth individuals (HNWIs) polled globally have invested in digital assets.
For the purposes of its “World Wealth Report,” Capgemini defined HNWIs as millionaires. Of those polled, 54% had a net worth of under $30 million and the remaining 46% had more.
Furthermore, 91% of respondents under the age of 40 had invested in digital assets. The report stated that cryptocurrencies were considered the favorite digital asset among investors, with other “sought-after” digital assets including exchange-traded funds (ETFs) and metaverse investments.
However, the size of the crypto investments made by HNWIs remained speculative. As of January this year, 14% of portfolios were allocated to “alternative investments,” which also include commodities, foreign currencies, private equity and hedge funds.
Today, Capgemini unveils its World Health Report revealing the global High Net Worth Individual (HNWI) population grew nearly eight percent. Click here to read why North America retains the top spot for high-net-worth population and wealth. https://t.co/g6JY66ZXhs pic.twitter.com/ztjSz3VgK6
— Capgemini Americas (@CapgeminiAM) June 15, 2022
Still, that figure has steadily increased from 2018, when only 9% of HNWI portfolios comprised “alternative investments.”
The timing of the report should also be noted. When it was published on Tuesday, the report described crypto’s market cap as being greater than $2 trillion; today, the number is in fact closer to $900 billion.
The last time crypto had a market capitalization of over $2 trillion was April 5 this year, according to CoinMarketCap.
Family offices and crypto
In Summer 2021, multinational investment banking giant Goldman Sachs published a report that said 18% of the family offices it surveyed saw cryptocurrency as a hedge against inflation.
A family office is basically an asset manager—like Blackrock or the crypto-oriented Grayscale—but which typically only stewards the wealth of a single ultra-high-rolling individual and their family.
Of the 150 respondents to Goldman Sachs’ report, 15% already held cryptocurrencies, (among American respondents that number was 25%), while 40% of those polled were concerned about fiat currency debasement.
However, not everyone was convinced: 47% of American family offices responded that they believe crypto is not a good store of value. Just 24% of Asian respondents felt the same.
With Bitcoin testing $20,000 on Wednesday, it’s fair to say that a lot has changed in the months since the Goldman Sachs and Capgemini reports were written.
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Source: https://decrypt.co/103070/most-wealthiest-individuals-digital-assets-capgemini
