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Digital Assets on the Rise in Asia’s Private Wealth Sector
Investor Interest Shifts Towards Digital Assets
Increasing Focus on DeFi, AI, and DePin
Digital assets are becoming increasingly popular among private wealth investors in Asia, with a growing interest in decentralized finance (DeFi), artificial intelligence (AI), and decentralized physical infrastructure networks (DePin).
Survey Reveals Growing Allocation to Digital Assets
A recent report by Aspen Digital highlighted a significant shift in investor sentiment towards digital assets. In 2024, 76% of respondents were already investing in digital assets, compared to 58% in the previous survey. The survey also showed a rise in planned investments in this space.
Caution Prevails Among Wealth Management Clients
Majority Maintain Conservative Portfolio Allocation
Despite the increasing interest in digital assets, most private wealth management clients remain cautious. A majority of respondents indicated that digital assets accounted for less than 5% of their portfolio, reflecting a conservative approach to this emerging asset class.
Altcoin Exposure Grows Among HNWIs
However, some high-net-worth individuals and family offices have been increasing their digital asset allocation, particularly in altcoins. This trend follows regulatory approvals for Bitcoin and Ethereum exchange-traded funds in the US.
Shift Towards Emerging Narratives
New Trends Gain Traction
The survey revealed a shift in investor preference towards emerging narratives such as AI, DePin, and DeFi. Interest in these sectors has been steadily growing among private wealth participants in Asia.
Bullish Outlook on Market Growth
Despite the cautious approach, respondents expressed optimism about the future market outlook. Factors such as interest rate cuts, US presidential election results, and robust crypto industry development were seen as key drivers of growth.
Consolidation of Asset Management Services
Rise in Demand for Comprehensive Wealth Management
The survey highlighted a fragmented digital asset landscape, indicating a growing need for asset wealth managers to provide a one-stop-shop service. This trend reflects the demand for integrated wealth management solutions in the digital asset space.
Key Growth Drivers
Respondents cited various factors driving market growth, including interest rate cuts, election results, and industry developments. The overall sentiment pointed towards a positive market outlook for digital assets in the private wealth sector.
About Aspen Digital
Co-Incubated Venture in Asia
Aspen Digital is a venture co-incubated by Everest Ventures Group in Hong Kong and TT Bond Partners in the UK. The survey included inputs from family offices, HNWIs, and asset managers based in Asia, providing valuable insights into the digital asset landscape in the region.