HNWs Seek Crypto Advice

Eight out of 10 high net worth (HNW) individuals have asked their financial advisers about including cryptocurrencies, such as Bitcoin, into their portfolios over the last 12 months, despite the market experiencing a difficult year in 2022, says a study by the deVere Group. Nigel Green, its CEO and founder, says, “Wealthy investors understand that digital currencies are the future of money and they don’t want to be left in the past.” In 2022, the crypto market delivered its worst performance since 2018, with Bitcoin falling about 75 per cent during the year. “The price drops came as investors reduced their exposure to risk-on assets including stocks and crypto due to heightened concerns about inflation and slower economic growth. “Interestingly, this typically more conservative group were not deterred by the bear market and adverse market conditions. Instead, they were looking to either start including or increasing their exposure to crypto,” he says. “This suggests that these high-net-worth clients are increasingly aware of the inherent characteristics of cryptocurrencies like Bitcoin which has the core values of being digital, global, borderless, decentralized, and tamper-proof.”