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How Much Crypto the Super-Rich Keep in Their Wallets

A new report from KPMG and Aspen Digital reveals how wealthy families and family offices in Singapore and Hong Kong invest.

By Finst News
• 3 min read
How Much Crypto the Super-Rich Keep in Their Wallets

A new report from KPMG and Aspen Digital shows how wealthy families and family offices in Singapore and Hong Kong invest.

Bitcoin, Altcoins, or NFTs? According to Statista, there are currently more than 9,000 cryptocurrencies worldwide — more than 10,500 as of July this year. While Western Europe remains the biggest crypto economy, the adoption of Bitcoin and other cryptocurrencies is rising quickly, especially in the Asian region.

A new KPMG China and Aspen Digital report offers more insight into digital asset investing behavior. Their data shows they surveyed a total of 30 family offices (FOs) and high-net-worth individuals (HNWIs) in Singapore and Hong Kong in Q2 2022.

According to the study, more than half (58 percent) of respondents have already invested in digital assets. A third (34 percent) are even interested in it. The report also states that only 8 percent do not invest in Bitcoin and other cryptocurrencies.

The study finds that the majority of respondents are mainly concerned about regulation of digital assets. Half worry about crypto volatility (50 percent) and the limited research into and valuation of digital assets (50 percent). Tax issues add to uncertainty for 37 percent of respondents.

In particular, in the city-state of Singapore, the focus appears to be on consumer protection related to cryptocurrencies. The Monetary Authority of Singapore (MAS) — the central bank and market regulator — has published two new regulatory recommendations to strengthen investor protection in the crypto sector.

MAS says it requires firms to "properly segregate" client assets. It should also be prohibited to let small investors use credit facilities and leverage in crypto trading.

Crypto in the portfolio: "All-in" looks different

In portfolios, crypto plays only a subordinate role compared to traditional assets. The study shows digital assets make up less than 5 percent of the portfolios for 60 percent of respondents and 10–20 percent for a fifth (20 percent) of participants. For 6 percent, digital assets make up 30 percent or more of the portfolio.

But what should the desired portfolio look like? About 40 percent say they want to allocate between 5 and 10 percent of their portfolio to digital assets, while a third (33 percent) want it to stay under 5 percent.

Meanwhile, asset choices are clearer: All respondents already invested in digital assets would include Bitcoin (BTC) in their portfolios, with 87 percent also holding Ethereum (ETH). Stablecoins, NFT and Metaverse assets are each held by 60 percent of survey participants. DeFi tokens would also appear in the portfolios of just under half (47 percent).

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.