In spite of 2022 being a challenging year for the market, eight out of ten high-net-worth (HNW) people have urged their financial advisors to include cryptocurrencies such as Bitcoin in their portfolios during the last year.
According to research conducted by the financial advising company deVere Group, 82% of customers with between £1 million and £5 million in investable assets sought cryptocurrency assistance.
Nigel Green, CEO and founder of deVere Group, said in a news statement published with Finbold, “In 2022, the crypto market recorded its worst performance since 2018, with Bitcoin, the market leader, falling about 75% for the year.
In spite of the so-called ‘crypto winter,’ HNWs regularly sought guidance from their financial advisors about the inclusion of digital currencies in their investment portfolios.
Intriguingly, this generally more conservative segment was unaffected by the bear market and bad market circumstances. Instead, they sought to include or increase their exposure to cryptocurrencies.
This shows that these high-net-worth customers are becoming more aware of the intrinsic qualities of cryptocurrencies such as Bitcoin, which are digital, global, borderless, decentralized, and tamper-resistant.
Rich investors see that digital currencies represent the future of money, and they do not want to be left behind.
Institutional investors, such as Wall Street titans, offer more cash, influence, and confidence to the industry, as reported by a significant proportion of these HNW respondents.
JPMorgan, like many other big traditional financial organizations, like Fidelity, BlackRock, and New York Bank Mellon, has begun offering crypto-related services to its customers in recent months.
As the ‘crypto winter’ of 2022 begins to thaw, according to the CEO of deVere, this desire will continue to increase.
Based on the belief that inflation has peaked, monetary policies have become more favourable, and the numerous crypto-sector disasters, including high-profile bankruptcies, are in the past, he predicts that January will be Bitcoin’s best January since 2013.
Since the beginning of the year, the value of the world’s biggest cryptocurrency has increased by more than 40 percent, which will not go unnoticed by HNW customers and those seeking to create wealth in the future.
To sum up Nigel Green’s analysis, “since HNWs were exhibiting such great interest in the 2022 bad market, as market circumstances slowly improve, they will be among the first to gain in the next bull run.”
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