Post-Winter Crypto Demand Resilience Among the Wealthy

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Demand for digital assets in 2022 was strong among affluent and high net worth individuals and family offices, according to a recent study, and remained strong even after the collapse of Terra.

Demand for crypto was strong in 2022 among high net worth individuals (HNWIs) and family offices with 70% and 80%, respectively, very interested or very interested in digital assets, according to research by Longitude Research and Matrixport.

About 7% and 10% of the two segments, respectively, were uninterested, with 80% overall having invested in the nascent asset class over the past year.

Post-Terra Request

Interestingly, these sentiments remained largely the same even after the post-Luna stock market crash.

In fact, demand has even increased among affluent people with only one in four interested in crypto before May 2022, compared to half who were interested afterward.

Despite the bleak market outlook, we continued to see an influx of big investors into digital assets, said Eugene Lim, head of private wealth at Matrixport, a digital asset manager.

Traditional finance

In addition to pull factors such as diversification benefits, the study also revealed a number of demand pull factors for crypto caused in part by traditional finance, including the perceived abuse of government control. through the banking system and the debasement of paper currencies.

Nevertheless, there were still major barriers to entry, including fraud risks, cybersecurity risks, market volatility and lack of understanding of the asset class. One in three investors also admitted to investing without fully understanding digital assets.

The 2022 Private Wealth in Digital Assets Study surveyed 1,500 international investors, including single and multi-family offices, HNWIs and high net worth individuals in Singapore, Hong Kong, Taiwan, Australia and the UK. The surveys were conducted between May and June 2022.

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