Capgemini, a tech consulting firm released its yearly report called “World Wealth Report,” which polled 2,973 global HNWIs. Out of them,46% reported their wealth to be $30 million and over and 54% reported their wealth between $1 million to $30 million.
The survey was about upcoming financial instruments like digital assets related to exchange-traded funds (ETFs), metaverse-related products, non-fungible tokens (NFTs) and cryptocurrencies.
One of every seven wealthy people has invested in digital assets, with most under 40 in age. The report further claims that nine out of ten in this age group have put their money into digital assets. The younger partner said cryptocurrencies are their number one venture, with crypto ETFs and metaverse items likewise exceptionally desired.
Crypto doesn’t make up the majority of portfolios, in any case, and on average, HNWIs have just allocated around 14% into “alternative investments,” which puts crypto with commodities, currencies, private equity and hedge funds.
“The influx of new investment avenues such as sustainable investing and digital assets is having a crucial impact on the wealth management industry. Wealth management firms must prioritize providing timely education around this trend to retain their customers.”
Some entities have a hint of this trend and want to capitalize on this opportunity early onwards. They want to launch investment products in this sector to target this changing demographic.
The report also said that digital asset investment has increased “the demand for educational capabilities.”
The report is similar to a report by Accenture which also concluded that investment products with cryptocurrency or digital asset exposure have popped up rapidly but the management firms have been slow to adopt them. Many management firms still refuse or have no wish in the near future to offer related services.