Crypto attracts millions. While the United States continues to dominate the crypto ETF market, Asia is the continent that records the highest crypto adoption according to a recent report. Countries like South Korea and Japan have seen a significant increase in the number of wealthy investors in recent years, and apparently, it’s not over.
The key points of this article:
Asia is experiencing a rapid crypto adoption, driven by wealthy investors who see cryptocurrencies as an essential tool to preserve and transfer their wealth.
Deliberate and specific Asian regulatory frameworks, particularly in Singapore and Hong Kong, attract investments, while Japan is focusing on Bitcoin mining to stimulate its economy.
Wealthy Asians are crazy about crypto
According to a recent report published by Sygnum and covered by the press, high-net-worth individuals (HNWIs) or 'high-net-worth persons' in Asia are increasingly fond of cryptocurrencies.
Thus, 87% of surveyed HNWIs reported holding cryptocurrencies, with an average allocation of 17%. Even more impressively, 60% of them plan to increase their exposure to cryptocurrencies in the coming years.
As a reminder, HNWIs are individuals with at least 1 million dollars in investable assets, representing a relatively significant portion of investors.
Contrary to popular belief, these investors do not see cryptocurrencies as just a speculative bet. In fact, 90% of respondents consider digital assets essential for long-term wealth preservation and estate planning.
“Digital assets are now firmly embedded in the private wealth management ecosystem of the Asia-Pacific region. And these investors are not speculators, but indeed investors with time horizons of 10 to 20 years who are thinking about intergenerational wealth transfer.”
Report published by Sygnum – Source: Cointelegraph
Among the most popular cryptocurrencies are, unsurprisingly, Bitcoin (BTC), Ether (ETH), and Solana (SOL). These three cryptocurrencies are held by 80% of active investors in the sector.
Investments in crypto are attracting more and more high-net-worth individuals in Asia
Clearer regulations in Asia that attract investments
Asian cryptocurrency regulation is often perceived as strict. However, according to Gerald Goh, co-founder of Sygnum, it is primarily 'clearer and more structured,' which attracts investors seeking stability and visibility.
Countries like Singapore and Hong Kong have established clear regulatory frameworks, allowing investors to navigate this ecosystem more smoothly.
For its part, Japan is sending multiple positive signals to the sector, and according to Chainalysis, the country is among the leaders in global crypto adoption due to its public policy in this area. Between Asia and the United States, if this continues, there will be only crumbs left for the Old Continent.
