Digital asset demand in 2022 was strong amongst the affluent, high net worth individuals and family offices, according to a recent study, and it stayed strong even following the Terra collapse.
Crypto demand was strong in 2022 amongst high net worth individuals (HNWI) and family offices with 70 percent and 80 percent, respectively, either very interested or highly interested in digital assets, according to a study by Longitude Research and Matrixport.
Around 7 percent and 10 percent of the two segments, respectively, were uninterested with 80 percent overall investing in the nascent asset class in the past year.
Post-Terra Demand
Interestingly, such sentiments «remained largely the same» even following the post-Luna market crash. In fact, demand even rose amongst mass affluent individuals with just one in four interested in crypto prior to May 2022 compared to half who were keen thereafter.
«Despite the gloomy market outlook, we have continued to see an influx of large investors in digital assets,» said Eugene Lim, head of private wealth at Matrixport, a digital asset manager.
Traditional Finance
In addition, to pull factors like diversification benefits, the study also found a number of push factors driving crypto demand caused in part by traditional finance including «perceived abuse of government control through the banking system and debasement of paper currencies».
Nonetheless, there were still key barriers to entry including fraud risks, cybersecurity risks, market volatility and lack of understanding about the asset class. One in three investors also admitted to investing without fully understanding digital assets.
- The «Private Wealth in Digital Assets Study 2022» surveyed 1,500 international investors including single and multi-family offices, HNWIs and mass affluent individuals across Singapore, Hong Kong, Taiwan, Australia and the UK. The surveys were conducted between May and June 2022.
