While the crypto sector is going through a difficult phase, the confidence of high-profile investors doesn’t seem to be shaken a bit. Data from a study shows that high-net-worth investors have continued to show interest in the digital asset class.
Recently, a financial firm conducted a study on the interest of investors towards crypto and briefed media that about 92% of high profile and high net worth clients have asked their financial advisors about the chances of including cryptocurrencies in their investment portfolio over the past year.
The study interviewed about 537 financial advisors residing in the United States. Out of the individuals interviewed, more than a third population, i.e., about 35%, expressed their clients’ interest in crypto has increased over the past year. Furthermore, about 30% confirmed that they are already working towards it, i.e., have recommended or are planning to recommend specific cryptocurrencies to these clients in the upcoming three months.
Market analysts have commented on the increasing interest of high-profile investors and see it as a positive sign. David Easthope, a senior analyst, opined that financial advisors expect the growing appeal of investors to continue in the coming times and not be deterred by the prevalent bearish market trend or the recent market happenings.
“Financial Advisors believe that the growth trend for digital asset adoption as an emerging asset class will persist and continue to increase, even in the face of the current bear market and recent market events.”
Over the past year, the total market capitalization for crypto has lost close to $1.44 trillion, declining 63.49%. As of December 16, 2021, the market cap was recorded at $2.27 trillion; as of December 16, 2022, it has fallen to $826.91 billion.
Easthope added that financial advisors were aware of this rising interest and prepared to cater to this demand by integrating the required investment products and platforms. As a result, he concludes that the “long-term demand trend remains intact among this fairly conservative segment of the market.”
In June last year, Mary Callahan Erdoes, JPMorgan’s director of asset and wealth management, said that a substantial proportion of JPMorgan clients perceive digital currencies like Bitcoin as an asset class. In November 2022, in the weeks following the crash of FTX, data suggested fresh signs of accumulation of cryptocurrency, especially Bitcoin, as reported by Todayq News.