Over Half of Investors in Asia Already Hold Crypto: Accenture Report

Key Insights:

• 52% of wealthy Asian investors already hold digital assets.
• A further 21% is expected to invest by the end of 2022.
• Cryptos represent 7% of surveyed investors’ portfolios and make the fifth-largest asset class in Asia.

Last year, several reports noted that Asian nations are leading the world in crypto investments. For instance, the comparison website Finder.com found that of 27 countries surveyed, the top five countries were all in Asia.

From India’s rise in trading volume by 500% in 2020 to one-third of South Korea’s population owning or getting paid in cryptocurrencies, it became clear that Asian populations are embracing these burgeoning financial instruments.

But it is important to note that, despite the current crypto market downfall, over half of the affluent investors in Asia hold cryptocurrencies such as bitcoin (BTC), ether (ETH), litecoin (LTC), in some sort or the other.

Cryptos – fifth largest asset class in Asia

Professional services giant Accenture released an industry poll on Monday, which found that Asian wealth managers are reluctant to sell digital assets to investors, despite its growing demand among investors.

Dubbed “the Future of Asia Wealth Management,” the analysis noted,

“Currently, 52 percent of affluent investors in Asia hold digital assets. Accenture’s research indicates this could reach 73 percent by the end of 2022.”

The results were drawn from two surveys involving 3,200 investors and over 500 financial advisors from wealth management firms across Asia. The polls were conducted between December 2021 and January 2022.

The business further stated that affluent investors in Asia allocated their portfolios to digital assets, which is more than they allocated to foreign currencies, commodities, and collectibles. The percentage of crypto investors is expected to further grow by this year. The report continued,

“A further 21% expect to invest in them by the end of 2022. Digital assets represent 7% of surveyed investors’ portfolios — making it the fifth-largest asset class in Asia.”

Additionally, digital assets, the $54 billion revenue opportunity, are being ignored by most wealth management firms because they lack the necessary knowledge. Accenture added,

“Among firms’ barriers to action are a lack of belief in (and understanding of) digital assets, a wait-and-see mindset, and – given that launching a digital asset proposition is operationally complex – choosing to prioritize other initiatives.”

Driving adoption in Asia

Mainstream crypto adoption in the Asian markets is rising, with governments eyeing the industry and trying to compete with other major economies in testing and releasing a central bank-backed cryptocurrency (CBDC).

A Chainalysis report noted that East Asia accounts for the largest crypto market, responsible for 31% of all transactions made in 2020. 

Recently, crypto exchange Gemini found that digital asset adoption skyrocketed in 2021, particularly in countries such as India and Hong Kong.