Rich people becoming more interested in cryptocurrencies

June 19, 2018
Chris Wheal

A poll revealed on Tuesday that high net worth individuals (HNWIs) were becoming more interested in cryptocurrencies as an investment in 2017, but remained cautious on the fledgling sector.

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CapGemini, the business consultancy and software group, said in its World Wealth Report 2018 that while cryptocurrency investments reached an all-time high in January 2018, the wealth management industry was circumspect about the sector’s growth.

Growing interest

Nearly 30% of HNWIs surveyed across the globe in CapGemini’s report had a high-level of interest in holding cryptocurrencies, while nearly 27% said they were “somewhat” interested.

“Cryptocurrencies’ potential for investment returns and potential as a store of value are driving HNWI interest,” the report said.

Globally, 39.3% of HNWIs said investment return was the primary reason they would hold or purchase cryptocurrencies, while 19.3% cited the potential as an alternative store of value.

Courtesy of CapGemini

CapGemini defines a HNWI as having at least $1m to invest – excluding houses, automobiles and collectibles.

Wealth industry cautious

While their interest was stirred in 2017 by rapidly accelerating price growth, the enthusiasm of HNWIs was not matched by the wealth management industry.

“More than a quarter of the HNWIs placed importance on receiving cryptocurrency information from primary wealth management firms, especially the younger generation,” the report suggested.

“On the other hand, wealth management firms have been ambivalent when it comes to providing cryptocurrency information to HNWI clients.”

CapGemini’s report into cryptocurrencies concluded that the near 30% of HNWIs that are currently “on the fence” about cryptocurrencies could be a valuable source of new assets for wealth management firms that are able to engage in meaningful dialogue on the sector.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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