According to a recent study, 34% of family offices and high-net-worth individuals (HNWI) from Singapore and Hong Kong have already invested in digital assets, and close to 60% of them aim to do the same. The study discovered that in addition to holding BTC and ETH, the super-rich in the two regions has a greater interest in non-fungible tokens (NFTs) and decentralised finance (defi) products.
More than 60% of the 30 family offices and HNWIs that took part in the study, as reported in a Chinese newspaper, had assets under management (AUM) that ranged from $10 million to $500 million. As stated in the report, the market’s decline did not deter the super-rich from investing in crypto assets in the two regions.
While this is going on, the CEO of Aspen Digital reportedly stated that he anticipates the wealthy families from these areas to raise the percentage of their money allocated to digital assets. Yang Paul McSheaffrey, a senior banking partner at KPMG China, completely agrees with him in his opinions. He claimed that wealthy families may decide to invest more in digital assets due to the high chance of upside.
According to a recent analysis by the Basel Committee on Banking Supervision, almost $9 billion in institutional wealth is currently exposed to cryptocurrencies. A new set of regulations regarding the capital that lenders must maintain against innovative assets has been taken into consideration by the Basel committee, which is in charge of developing global banking standards. To prevent a financial crisis like the one that occurred in 2008, the committee is a group of national regulators that establishes standards for banks.
The majority of the funds allotted by the 19 banks that submitted data were found to be locked in Bitcoin and Ethereum, which indicates that institutions are somewhat convinced with the acceptance of these two cryptocurrencies. However, the 19 banks’ combined risk exposure for cryptocurrencies is merely 0.14% or 0.01% on average.