The chief executive of investment firm Morgan Creek Capital says that the digital asset industry is set to be inundated by hundreds of billions of dollars coming from the baby boomer generation. In a new interview with crypto influencer Scott Melker, Morgan Creek Capital CEO Mark Yusko says that within the next 12 months, he […]
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A recent study from deVere Group found a majority of their clients had asked their financial advisers about adding crypto to their portfolios.
Despite a challenging year for crypto, 82% of millionaire clients had looked into investing in digital assets such as Bitcoin (BTC) in 2022, according to a recent poll conducted by financial advisory firm deVere Group.
The poll results, released on Jan. 30, found that eight out of 10 of the firm's high net worth (HNW) clients surveyed with between $1.2 million and $6.1 million of investable assets sought advice on crypto from financial advisers in the last 12 months.
82% of millionaires seek advice on crypto as Bitcoin soars#PressRelease
— deVere Group (@deveregroup) January 30, 2023
https://t.co/nv6HSZBxEs
Nigel Green, the CEO and founder of deVere Group said that despite the surveyed group being "typically more conservative," he believes the interest stems from Bitcoin's core values of being "digital, global, borderless, decentralised and tamper-proof."
Previous years’ studies from the firm have shown a trend increasing interest in crypto investments from wealthy investors.
A 2020 study from deVere found that 73% of the 700 surveyed HNW individuals either already own or are looking to invest in cryptocurrencies before the end of 2022, while the firm's 2019 study found that 68% of global HNW individuals were already invested or planning to invest in crypto by the end of 2022.
Green also notes the uptake in interest in offering crypto services to clients by legacy financial institutions like Fidelity, BlackRock, and JPMorgan as a good sign for the industry.
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A June 2022 report from PricewaterhouseCoopers, or PwC found roughly one-third of the 89 traditional hedge funds surveyed were already investing in digital assets such as BTC.
The deVere CEO believes this momentum of interest could build further as the “crypto winter” of 2022 thaws in the wake of changing conditions in the traditional financial system.
"Bitcoin is on track for its best January since 2013 based on hopes that inflation has peaked, monetary policies become more favourable, and the various crypto-sector crises, including high-profile bankruptcies, are now in the rear-view mirror.”
"The world's largest cryptocurrency is up over 40% since the turn of the year, and this will not go unnoticed by HNW clients and others who want to build wealth for the future," Green added.
HNW individuals are not the only ones who have increased their crypto holdings over the last year.
According to a Dec. 13, 2022 report from JPMorgan Chase, around 13% of the American population, roughly 43 million people, have held cryptocurrency at some point in their lives, an increase from 2020, when the figure was only around 3%.
A recent Opinium poll has shown that a majority of British financial advisers are not advocates of crypto investing for their clients.
More than 90% of 200 independent financial advisers (IFA) in the United Kingdom who participated in a recent poll by research agency Opinium have indicated negative cryptocurrency sentiments with over a third reporting an increase in cryptocurrency-related inquires from clients since the start of the year.
Quoting figures from the poll, Reuters reported on Wednesday that 93% of surveyed IFAs would not recommend crypto investment vehicles to their clients.
A similar negative sentiment also showed for meme stocks — a term used to describe shares of companies whose values are often driven by retail trading mania. As part of the figures, 95% of polled IFAs also said they would not recommend meme stocks as viable investment options for their clients.
Details from the survey also showed that 90%–95% of IFAs advising clients with portfolios between $140,000 to $280,000 and above $280,000 would be concerned if those same clients invested in cryptocurrencies. Opinium research chief Alexa Nightingale told IFA Magazine:
“There is clearly uncertainty and concern in the industry, and advisors with clients of all sizes would be wary if their clients were investing in these products. However, these sorts of investments are becoming more mainstream, so it will be interesting to see how advisers navigate this in future.”
Related: Bank of England governor issues crypto investment warning
The IFA survey is consistent with the negative sentiments espoused by legacy finance figures in the country. Both the U.K. Financial Conduct Authority and the Bank of England have sounded cryptocurrency investment warnings in recent times.
However, cryptocurrency adoption continues to grow in the U.K. with a recent survey showing that more Brits invested in virtual currencies than stocks in 2020.
Despite most IFAs being anti-crypto, more than a third of the surveyed advisers agreed that cryptos will become a legitimate asset class in the future. A slightly lower proportion — 24% — offered the same prediction for meme stocks.
