As a new survey shows, around 71% of the world’s richest hold digital assets and wealth management firms have been advised to prioritise the provision of education and advice.
The technology consulting company Capgemini published its World Wealth Report 2022. In it, 2,973 wealthy people worldwide took part in a survey, 54% of whom hold an asset range of $ 1 million to $ 30 million and 46% $ 30 million and more.
The survey sought to find out investment preferences for emerging asset classes such as digital assets, including exchange-traded funds (ETFs), NFTs and metaverse-related products.
Of around one in seven wealthy individuals investing in digital assets, the highest concentration was under the age of 40. More than nine out of ten in this age group have invested in digital assets. For this age group, cryptocurrencies are their favorite investment, with crypto ETFs and Metaverse products also being very popular.
However, cryptocurrencies do not make up the majority of portfolios. In it, on average, only about 14% are in alternative investments, which also include cryptocurrencies in addition to commodities, currencies, private equity and hedge funds.
Capgemini found that the wealth management industry is seeing an influx of investment in digital assets, which is increasing the demand for educational capacity.
Nilesh Vaidya, Head of Retail Wealth Management of the company, said:
“The influx of new investment opportunities such as sustainable investing and digital assets is having a significant impact on the wealth management industry. Asset management firms must prioritize timely education about this trend in order to retain their clients.”
The survey follows previous research by Accenture, which found that 52% of wealthy investors in Asia owned some form of a digital asset in the first quarter of 2022, which accounted for an average of 7% of the portfolios of the surveyed investors.
Accenture also noted that asset management firms were slow to introduce investment products with cryptocurrencies or digital asset engagement. However, the majority said they had no plans to offer related services.