Despite the fluctuation the importance of digital assets in the last two years, the sector Continues to attract new fans. This is partly because investors’ interest in diversifying their portfolio with this new asset class. Among these investors, we see especially the “family offices” and the super-rich in Hong Kong and Singapore.
Interest is growing despite the bear market
A “family office” is a a private wealth management company created by a very wealthy family that provides a selection of personalized services to this same family. This can include investment management, financial planning, estate and tax planning, philanthropic investing, concierge services, etc.
Today the Family Office (FO) as well as the high net worth individuals (HNWI) of Hong Kong and Singapore invest heavily in crypto currencies. This information was revealed by a recent study titled “Investing in Digital Assets – Family office and high net worth investors’ perspectives on digital asset allocation” and published on October 24, by KPMG China and Aspen Digital.
According to this report, in Singapore and Hong Kong, 92% of respondents say they are interested in cryptocurrencies. For Family Offices and HNWIs, 58% are already investing in digital assets and 34% plan to do so.
Breakdown of FO and HNWI investments in digital assets. Source: KPMG/Aspen Digital
The boss of crypto platform Aspen Digital, Yang He said on these results:
“In the last 18 months, institutional investor interest in digital assets has grown tremendously. For the private wealth management industry in Asia, digital assets represent an emerging asset class that offers unparalleled opportunities within other financial products.”
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What are the most popular digital assets?
Without too much surprise, we see the flagship digital asset at the forefront: Bitcoin (BTC). However, the score is still very impressive since then 100% of investors hold Bitcoins. Then, in position 2ᵉ, we find Ethereum (ETH) with 87% of investors holding this digital asset. We also learn that this is contrary to the current market trend, 60% of respondents currently investing in non-mixed tokens (NFT). Stables are also popular with a 60% investment score.
The types of digital assets held by super-rich Singaporeans and Hong Kongers
That said, Paul McSheaffrey, Financial Services Partner at audit and advisory firm KPMG China expressed:
“There is a need to hedge related products and derivatives to increase the allocation to digital assets to allow investors to effectively manage risk. The development of such products outside of popular tokens such as Bitcoin and Ethereum will help drive allocation to a wider range of digital assets.”
Hong Kong and Singapore, 2 very “crypto friendly” countries.
The two Asian countries are struggling for the lead because crypto industry leader. In fact, both city-states develop and implement many ways to install digital assets on their territory. As a result of this lax regulationfor example, in Hong Kong, you don’t pay taxes on crypto-related profits because the simple rate is 0%.
Hong Kong Island also plans to bring the an opportunity for retail investors to buy digital assets directly. All this while we are working on a new law that would make cryptocurrency policies clearer. Besides, he would allowincrease growth in the digital asset market on the island.
For its part, Singapore’s largest bank, DBS Group Holdings, now offers a crypto trading service for its 100,000 wealthiest customers. Online crypto trading giants Coinbase and Blockchain.com were recently approved to offer crypto services in Singapore. Just like Hong Kong, Singapore has a very flexible regulation regarding cryptos with no tax on profits made when selling digital assets.
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