A new report from Aspen Digital estimates that 76% of private wealth in Asia has already invested in digital assets, with another 18% planning future involvement.
It marks a notable increase from 2022, when only 58% of respondents had ventured into digital assets, signalling a growing interest in blockchain technology and cryptocurrencies within the region.
Rise of Digital Asset Investments in Asia
Eighty family offices and high-net-worth people from Asia were questioned for the report; the majority of them are asset managers with holdings between $10 million and $500 million. 70% of investors who have already made cryptocurrency investments have dedicated less than 5% of their portfolios to digital assets.
Nonetheless, in 2024, more investors were holding more than 10% of their portfolios in digital assets, indicating a growing level of confidence in the industry.
The findings of Aspen Digital demonstrate how Asia’s private wealth sector is moving towards digital assets. The blockchain’s technological applications have attracted a lot of investors due to its potential for high returns and diversity.
Interest in DeFi, AI, and Bitcoin
Interest in DeFi was indicated by two-thirds of survey participants. Furthermore, 61% expressed interest in decentralised physical infrastructure networks (DePIN) and artificial intelligence, highlighting the broad appeal of emerging blockchain technologies beyond cryptocurrencies.
Optimism about crypto remains strong in the region, with 31% of respondents predicting the cryptocurrency could reach $100,000 by the end of 2024. The recent approval of spot Bitcoin ETFs has further fueled this enthusiasm, as 53% of respondents have gained exposure to digital assets through ETFs or similar funds. This trend mirrors global developments, as highlighted by the Global Crypto Hedge Fund Report by AIMA and PwC.
Asia’s Growing Role as a Crypto Hub
Asia is quickly becoming a major centre for the crypto market, as blockchain services and decentralised finance gain traction. Once wary of digital assets, the private wealth sector in the region is now showing more interest in them, especially as technology continues to open up new investment opportunities.
Also read: Taiwan Adopts Crypto Custody through Local Banks Amid Growing Crypto Market
Unexpectedly, India has emerged as a leader in the use of cryptocurrencies. In sectors like supply chain management and banking, the nation has embraced blockchain technology and digital assets despite government regulations and heavy taxes.
Despite the growing interest, the majority of private wealth managers in Asia still allocate less than 5% of their portfolios to digital assets. The Aspen Digital report cites several hurdles to broader adoption, including the fragmented nature of the digital asset landscape, regulatory uncertainty, and poor user experience.
However, as institutional support and technology advancements continue to change the game, things are looking up. The growing interest in digital assets among Asia’s private wealth indicates a long-term movement towards the use of blockchain technology as a vital component of future investment plans.