Almost a third of high net worth individuals (HNWI) are interested in cryptocurrency investment, a new survey reveals, but are not receiving the proper advice and guidance from wealth managers.
The survey, conducted by Capgemini, reports that as well as the 29 per cent of HNWI who are actively interested in crypto investment, a futher 26.9 per cent are “on the fence” and weighing up their potential involvement.
But only a third of these potential investors said they had gotten sufficient information about cryptocurrencies from their wealth managers.
The survey reads: “Although regulatory uncertainty and firm caution have prevented cryptocurrencies from penetrating the wealth management industry, the strong demand for information on cryptocurrencies from younger HNWIs is likely to force wealth management firms to at least develop and offer and point of view during the months ahead.”
HNWI are defined as having at least $1 million to invest outside of their asset holdings.
In March, a wealth report by Knight Frank revealed that 21 per cent of the wealthy had increased investments in crypto in 2017, many of them have fundamental misunderstandings about the sector and blockchain technology.
Nicholas Holt, Knight Frank’s head of research for Asia-Pacific, told CNBC: “We asked about their understanding of blockchain and there is still a huge amount of misunderstanding about it. Although people are getting on the train about investing in cryptocurrencies, perhaps there is not a full understanding of what this could mean to their wealth portfolio.”