71% of high net worth individuals have invested in digital assets

A new report has found that the global high rollers are spending more money than ever on cryptocurrencies, which have become a major part of the rich individual’s investment portfolios.

The claim was made in a wealth management study from Capgemini, which is a Paris-based global leader of IT service and consulting company.

The firm also stated that the number of HNWI (High Net Worth Individuals) grew by 7.8% in the year 2021, among the 1.7 million individuals across the globe joining the category.

The firm added that wealth swelled by 8% to the tune of USD 6.4 trillion last year.

As a part of its research, Capgemini revealed that it had spoken to 2973 High Net Worth Individuals across 24 significant wealth markets in Europe, Latin America, North America, and Asia-Pacific about their investment behavior and their level of preference for emerging asset classes such as digital assets.

The company concluded that digital asset investments were becoming an important part of the HNWI portfolios and noted that 71% of the respondents said that they had already bought digital assets.

For the HNWIs aged under 40, moreover, the number was 91%.

Moreover, the report also added that younger High Net Worth Individuals revealed that cryptocurrencies are their favorite digital asset investment.

The same group stated that exchange-traded funds and metaverse-related investments were also of interest.

The French company noted that the popularity of the blockchain and crypto technology-related assets would likely pique the attention of wealth management firms, explaining as the adoption of the digital assets such as digital currencies, cryptocurrencies, metaverse-related products, ETFs, and NFTs grows, wealth management firms will need capabilities around education and products.

Apart from that, ecosystem partnerships will be necessary to create a diversified portfolio of digital offerings.

The report authors also added that the rise of digital asset classes had increased the demand for the educational capabilities for the High Net Worth Individuals to learn and make more informed decisions.

The authors quoted Joseph Gribb, the head of advice IT at the American investment advisor Vanguard, stating “that as demand for emerging asset classes rises, firms must provide investment advice based on customer risk tolerance and provide distinctive experiences across the several channels based on the customer preferences.

Capgemini explained that 30% of the High Net Worth Individuals it spoke to had accrued their fortune from the IT sector and belonged to what they called the technology wealth demographic.”

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