A joint study conducted by KPMG China and Aspen Digital estimated that 58% of family offices and high-net-worth individuals (HNWIs) from Hong Kong and Singapore had distributed some of their wealth in cryptocurrencies.
At the same time, 34% of the non-investors intend to join the ecosystem in the near future.
Almost Two-Thirds Are HODLers
The survey revealed that bitcoin and ether are the most popular digital currencies among family offices and HNWIs based in Hong Kong and Singapore.
Those consumers have also displayed significant interest in non-fungible tokens (NFTs) and decentralized finance (DeFi).
“NFTs have seen an explosion in interest since 2021, while the interest in DeFi began in 2020 and remains interesting,” said Yang He – CEO of Aspen Digital.
Despite the negative macroeconomic events and the reigning bear market, the executive expects that cryptocurrencies will become even more intriguing financial instruments for investors from those two countries.
Paul McSheaffrey – Senior Banking Partner at KPMG China – shares the same opinion. In line with the inflation and monetary crisis, an increased number of consumers might allocate a small chunk of their money in digital currencies and wait for a potential price expansion:
“For HNWIs and family offices, there is a real possibility of a big upside, so they may think, why not stick 2 or 3 percent of my portfolio in that and see what happens.”
According to Arthur Hayes, Hong Kong’s participation in the world of crypto is a key factor that could trigger the next bull run. The nation’s authorities recently revealed plans to legalize cryptocurrency retail trading and emerge as a digital asset hub.
Singapore’s officials, on the other hand, have withdrawn some of their support towards the sector. Following the Terra crash, they enforced strict rules to prevent similar cases.
Crypto Adoption on the Rise in South East Asia
Numerous countries from that part of the world have shown great interest in bitcoin and the alternative coins in the past several months.
A Chainalysis survey found out that Vietnam, with a score of 1.000, is the global leader in crypto adoption. A primary reason for its leadership could be the fact that locals find blockchain-based games quite intriguing.
The second position belongs to the Philippines, while Thailand and Indonesia are also among the top 20.