Crypto attracts more millionaires, according to new study: Details inside
The survey’s findings, which were made public on January 30, showed that eight out of 10 of the company’s high net worth (HNW) clients who had between $1.2 million and $6.1 million in investable assets had done so in the previous year.
Despite the study group being “usually more conservative,” according to Nigel Green, CEO, and founder of deVere Group, interest in Bitcoin was driven by its key characteristics of being “digital, global, borderless, decentralized, and tamper-proof.” Millionaire investors’ interest in cryptocurrency investments increased, according to studies.
What else does the report say? The firm’s 2019 study found that 68% of global HNW individuals were already invested or planning to invest in crypto by the end of 2022. Moreover, a 2020 study from deVere found that 73% of the 700 surveyed HNW individuals either already own or are looking to invest in cryptocurrencies before the end of 2022.
Green sees it as a positive sign for the sector because established financial firms like Fidelity, BlackRock (NYSE: BLK ), and JPMorgan are becoming more interested in providing clients with crypto services.
According to a PwC analysis from June 2022, about one-third of the 89 traditional hedge funds questioned were already investing in digital assets like bitcoin. The deVere CEO thinks that once the “crypto winter” of 2022 thaws because of altering circumstances in the old financial system, this momentum of interest could grow even more. The CEO said:
“Bitcoin is on track for its best January since 2013 based on hopes that inflation has peaked, monetary policies become more favorable, and the various crypto-sector crises, including high-profile bankruptcies, are now in the rear-view mirror.”America’s growing interest in crypto Not just HNW people have grown their cryptocurrency holdings in the past year. JPMorgan Chase (NYSE: JPM ) estimates that over 43 million Americans, or 13% of the country’s total population, held cryptocurrency at some point in their life as of 13 December, 2022. This is an increase from 2020 when only 3% of Americans were estimated to have done so.
The US Congress has been urged by to “step up its efforts” in regulating the cryptocurrency industry by four senior US officials at the White House. Congress should “increase regulators’ authority to prevent exploitation of customers’ money and to limit conflicts of interest,” the officials reportedly wrote in their letter to Congress.
Other recommendations made in the statement to Congress included tightening the standards for crypto companies’ openness and transparency, escalating the penalty for breaking laws governing illicit money, and cooperating more closely with foreign law enforcement partners.
Did Crypto have a good start to 2023? The year has started well for the cryptocurrency markets, which have seen some impressive gains as investors drive up the value of digital assets despite industry challenges.
By market value, Bitcoin is the most valuable digital currency in the world and just exceeded $24,000 after increasing by around 45% so far in 2023. The amount is currently $22,812, though. This cryptocurrency has had the best performance among all assets so far this year, according to a Goldman Sachs (NYSE: GS ) report from earlier this month.
Ether, the second-largest digital currency in the world by total market capitalization, surpassed $1,660 on January 21 after increasing by around 40% from the beginning of 2023.
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