A recent report by Aspen Digital reveals that 94% of Asia’s private wealth sector is either already invested in digital assets or planning to do so in the near future. Of this group, 76% have already ventured into cryptocurrency, while 18% are considering future investments. The growing interest highlights the increasing appeal of digital assets among high-net-worth individuals and family offices across Asia.
Crypto Gaining Traction Among Asia’s Wealthy
The survey, which involved 80 family offices and high-net-worth individuals managing assets between $10 million and $500 million, shows a significant uptick in crypto interest compared to 2022. Last year, only 58% of respondents had engaged with digital assets, demonstrating a substantial rise in participation over the past year.
While most respondents have allocated less than 5% of their portfolios to crypto, some have increased their holdings to over 10% in 2024, indicating a deeper commitment to digital assets as an investment strategy.
Optimism Surrounding Blockchain and Bitcoin
The report underscores the growing interest in blockchain technology beyond just cryptocurrency. Two-thirds of respondents expressed interest in decentralized finance (DeFi), while 61% showed a keen interest in emerging technologies like artificial intelligence and decentralized physical infrastructure networks (DePIN).
Moreover, optimism around Bitcoin remains strong, with 31% of respondents predicting that Bitcoin will surpass $100,000 by the end of 2024. This reflects a bullish outlook for the leading cryptocurrency, particularly in light of broader institutional acceptance and technological advancements.
The Role of ETFs in Driving Crypto Investments
The approval of spot Bitcoin exchange-traded funds (ETFs) has played a significant role in increasing digital asset exposure among Asian investors. According to the report, 53% of respondents have gained exposure to cryptocurrencies through funds or ETFs. This trend mirrors global developments in the crypto space, where regulatory clarity and the launch of crypto ETFs in markets like the US and Hong Kong have fueled further interest.
Spot Bitcoin ETFs debuted in the US in January 2024, followed by spot Bitcoin and Ether ETFs in Hong Kong in April, contributing to the growing demand for these investment products across Asia.
A Global Trend of Growing Crypto Adoption
The rising interest in digital assets in Asia is part of a broader global trend. A separate report by AIMA and PwC, surveying nearly 100 hedge funds managing a combined $124.5 billion, found that crypto exposure rose from 29% in 2023 to 47% in 2024. This increase has been driven largely by regulatory developments and the growing availability of crypto investment products, such as ETFs.
