Digital assets are currently held by 52 per cent of affluent investors in Asia. According to Accenture’s estimate, this might reach 73% by the end of 2022.
Cryptocurrencies are Asia’s fifth-largest asset class, according to an industry poll issued on Monday by Accenture, which revealed that Asian wealth managers are hesitant to sell digital assets to investors, despite increased demand.
The top five countries assessed by the comparison website Finder.com, for example, were all in Asia. Despite the current crypto market downturn, over half of Asia’s affluent investors possess cryptocurrencies such as bitcoin (BTC), ether (ETH), and litecoin (LTC) in some form.
Affluent Asian investors devoted more of their portfolios to digital assets than to foreign currencies, commodities, and collectibles, according to the company. By the end of the year, the number of crypto investors is likely to have increased. Continued the report,
“By the end of 2022, another 21% anticipate investing in them.” Digital assets are the fifth-largest asset class in Asia, accounting for 7% of surveyed investors’ portfolios.
Furthermore, most wealth management businesses are ignoring digital assets, a $54 billion revenue opportunity, due to a lack of expertise. Added Accenture.
From India’s 500 per cent increase in trade volume by 2020 to one-third of South Korea’s population owning or receiving payments in cryptocurrencies, it’s evident that Asians are warming to these emerging financial tools.
Governments are scrutinizing the business and competing with other big economies in testing and issuing a central bank-backed cryptocurrency (CBDC), while mainstream crypto acceptance in Asian countries is increasing.
East Asia has the largest crypto market, accounting for 31% of all transactions in 2020, according to a Chainalysis report.
Digital asset adoption soared in 2021, according to cryptocurrency exchange Gemini, especially in India and Hong Kong.