82% of millionaires seek crypto advice as Bitcoin soars – ValueWalk
Eight in 10 high net worth (HNW) people have asked their financial advisors to include cryptocurrencies, such as Bitcoinin their portfolios over the past 12 months – despite a tough 2022 in the market.
According to the results of a study by deVere Group, one of the largest independent financial advisory, asset management and fintech organizations in the world, 82% of clients with between £1 and £5 million of investable assets sought advice on cryptocurrencies.
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HNWs ask for advice on crypto
Nigel Green, CEO and Founder of deVere Group, notes: “In 2022, the crypto market recorded its worst performance since 2018, with Bitcoin, the headline-grabbing market leader, down around 75% during the year.
“The price declines came as investors reduced their exposure to risky assets, including stocks and crypto, on heightened concerns about inflation and slowing economic growth.
“Yet in this context of the so-called ‘crypto winter“, HNWs were constantly seeking advice from their financial advisors on including digital currencies in their portfolios.”
He continues: “Interestingly, this generally more conservative group has not been deterred by the bear market and adverse market conditions. Instead, they were looking to start including or increasing their exposure to crypto.
“This suggests that these wealthy customers are increasingly aware of the inherent characteristics of cryptocurrencies like Bitcoin, which have the core values of being digital, global, borderless, decentralized and tamper-proof.
“Wealthy investors understand that digital currencies are the future of money, and they don’t want to stay in the past.”
Many of those HNWs surveyed will also have seen a steady increase in interest from institutional investors, including Wall Street giants, who are bringing more capital, influence and trust to the sector.
In recent months, JPMorgan, like many other large traditional financial institutions including Fidelity, BlackRock, and New York Bank Mellon, has also started offering crypto-related services to its customers.
The CEO of deVere believes that this momentum of interest should strengthen as the “crypto winter” of 2022 thaws.
“Bitcoin is on track for its best January since 2013 based on hopes that inflation has peaked, monetary policies have become more supportive, and various crises in the crypto sector, including high-profile bankruptcies, are now in the rearview mirror,” he says.
“The world’s largest cryptocurrency is up over 40% year-to-date and that will not go unnoticed by HNW customers and others looking to build wealth for the future.”
Nigel Green concludes, “If HNW were to express such interest in the 2022 bear market, when market conditions are steadily improving, they will be among the first to take advantage of the next bull run.”
About the deVere Group
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions for international, high net worth and high net worth clients. It has a network of over 70 offices around the world, over 80,000 clients and $12 billion under advisory.
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