Digital assets owned by half of wealthy Asian investors: Accenture

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Digital assets such as cryptocurrencies are already among the top five most popular asset classes for investors in Asia, according to a report.

Affluent investors in Asia allocate an average of 7% of their portfolio to digital assets, more than currencies, commodities or collectibles, according to Accenture’s report.

“While younger investors are more exposed to cryptocurrencies, stablecoins, crypto funds, security tokens, and asset-backed tokens, the trend is broadly consistent across markets, wealth brackets, and genders. “, said the researchers.

Accenture’s report said investing in digital assets “is likely to become much more popular.”

Currently, 52% of affluent investors in Asia hold digital assets of some sort. Accenture research indicates this could reach 73% by the end of 2022.

The researchers said that wealth management firms are not doing enough to promote crypto or attract clients to the asset class.

“Accenture research reveals that two-thirds of wealth management firms in Asia do not intend to offer any form of digital asset proposition,” the report notes. “Most of those who do target [only] the relatively small custodial element of $7 billion.

Crypto and similar assets represent a $54 billion revenue opportunity “that most ignore”, according to the report, adding that transaction fees alone were worth $40 billion, with the rest split evenly between advisory fees and custodial fees.

This lack of engagement from wealth management firms means many investors seek digital asset advice in unregulated forums, including peer-to-peer advice on social media, Accenture said.

“Barriers to business action include lack of conviction, a wait-and-see mindset and, given that launching a digital asset proposition is operationally complex, choosing to prioritize to other initiatives.

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george russell

George Russell is a Hong Kong-based freelance writer and editor who has lived in Asia since 1996. His work has appeared in the Financial Times, Wall Street Journal, Bloomberg, New York Post, Variety, Forbes, and South China Morning Post. . .

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