Bitcoin is on the wish list of the rich. According to recent data, 8 out of 10 high net worth (HNW) individuals sought financial advice on adding cryptocurrencies to their portfolios in 2022.
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according to DeVere GroupOver the past year, high-net-worth individuals have been seeking advice on expanding their portfolios to include digital assets. Despite the crypto winter, high net worth individuals have shown a growing interest in the possibilities of crypto and decentralized finance (DeFi).
Crypto Winter failed to reduce interest in Bitcoin
according to survey Conducted by the deVere Group, one of the world’s largest independent financial advisory, wealth management and financial technology firms. The data shows that more than 80% of its clients, with more than $1 million and $5 million in investable assets, have sought advice on cryptocurrency as an investment tool.
Nigel Green, CEO and founder of deVere Group, noted that the cryptocurrency market in 2022 was its worst performance since 2018, with market-leading bitcoin “grabbing headlines” during the year.
Amidst this economic crisis, investors have reduced their exposure to the volatility of risky assets, including traditional market stocks and cryptocurrencies, due to rising inflation and a pause in economic growth.
Green noted that despite the crypto winter, high-net-worth individuals are seeking financial advice on bitcoin and cryptocurrencies from financial advisors to expand their investments and portfolios.
Nigel Green, founder of the Devere Group in 2002, which currently manages more than 10 billion US dollars and more than 80,000 active clients in more than 100 countries, pointed out that this conservative group of investors was not afraid of the bear market and adverse market conditions.
Instead, the conservative group of ultra-high net worth individuals are looking to start or increase their exposure to cryptocurrency. According to Green, these individuals understand that bitcoin and cryptocurrencies are the future of money, and they “don’t want to leave them in the past.”
The Financial Advisory Group also noted in its survey that in recent months, major financial institutions such as JP Morgan, Fidelity, BlackRock, and New York Mellon, among others, have started offering cryptocurrency-related services to their clients.
The deVere Group founder also believes that this momentum of interest from investors and financial institutions will continue to grow as the snow thaws in the winter of 2022 and the sector begins to recover.
Green also noted that Bitcoin is on track for its best January performance since 2013, based on hopes that inflation has peaked and that the economy is finally showing signs that inflation could take a different path.
Nigel Green believes that monetary policy may become more supportive and various crises in the crypto sector, including high-profile bankruptcies, are now in the rearview mirror.
According to the CEO of deVere Group, bitcoin is up more than 40% since the turn of the year, and this will not go unnoticed by high net worth clients and others looking to build wealth for the future.
Nigel Green concluded:
If the wealthy express such great interest in the 2022 bear market, as market conditions are steadily improving, they will be among the first to profit from the upcoming bull run.
Bitcoin is trading at $23,100 as of press time, up 0.8% in the past 24 hours after leaning towards support. It has gained slightly over the past seven days by 0.6%, with the upcoming Federal Open Market Committee (FOMC) meeting anticipating the cryptocurrency market.