Source: blockchain.news
To learn the crypto perspectives of Family Offices (FOs) and High Net Worth Individuals (HNWIs) in Singapore and Hong Kong, KPMG China and Aspen Digital conducted a study called “Investing in Digital Assets” and discovered a growing interest among this cluster.
According to the report:
“Despite the volatility in the digital asset market over the past two years, FOs and HNWIs are eager to invest in the sector. The survey found that 92 percent of respondents were interested in digital assets, with 58 percent of FOs and HNWIs already investing and 34 percent planning to do so.”
The growing interest in cryptocurrencies among FOs and HNWIs in Singapore and Hong Kong was being driven by portfolio diversification and high-yield prospects.
Confidence in digital assets was also boosted by increased participation from major institutional investors.
“Family offices and high net worth individuals in Hong Kong and Singapore have embraced this new asset class, with more than 90 per cent of respondents already investing in the space or planning to,” according to the study.
Bitcoin (BTC) and Ethereum (ETH) dominated the group’s investment portfolio. In addition, the growing interest in decentralized finance (DeFi) and non-fungible tokens (NFTs) were also mentioned.
Direct equity investment emerged as the main source of funding for crypto service providers. Matthew Lam, head of research at Aspen Digital, noted:
“We have observed that family offices/HNWIs prefer direct equity investments, while crypto-focused venture capital firms prefer the equity-plus-token collateral approach to investing in digital asset service providers.”
However, respondents cited inaccurate valuation and the changing global regulatory environment as the biggest obstacles to investing in crypto.
For example, all virtual asset service providers (VASPs) in Hong Kong will be required to apply for an operating license by March 2024. Additionally, Singapore is also considering expanding its scope of crypto regulation.
Meanwhile, Hong Kong recently showed its intention to legalize cryptocurrency trading after launching various legal initiatives related to emerging technologies in the cryptocurrency industry, Blockchain.News reported.
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