Asian Private Wealth Managers Eye Crypto Surge, Forecast Bitcoin to Hit $100K by Year-End

Private wealth managers in Asia are showing a growing interest in cryptocurrencies, especially Bitcoin. A recent report revealed that 76% of regional family offices and high-net-worth individuals have already invested in digital assets.

Many believe Bitcoin could reach $100,000 by the end of 2024, driven by the current bullish market and broader adoption.

Growing Interest in Crypto Investments

Asian private wealth managers are increasingly turning to digital assets. According to a report by Aspen Digital, many family offices and wealthy individuals are diversifying into cryptocurrencies.

As per Coindesk's report, a study showed that 76% of respondents now have crypto exposure, up from 58% last year.

Source: Aspen Digital

Additionally, 16% plan to invest in the future, signaling a growing confidence in digital assets.

The report surveyed over 80 wealthy families and individuals, primarily those with assets under management (AUM) between $10 million and $500 million.

About 20% of those surveyed had even significant investments, with more than $500 million under management.The jump in crypto interest is fueled by the promise of higher returns, with many investors viewing crypto as an appealing hedge against inflation.

Meanwhile, this increased interest is not limited to just Bitcoin. Decentralized finance (DeFi), artificial intelligence (AI), and decentralized physical infrastructure networks (DePin) are also attracting attention.

Specifically,67% of those surveyed expressed interest in DeFi, while 61% were drawn to AI and DePin.

Bitcoin Predictions for 2024

Bitcoin's future has private wealth managers in Asia optimistic. According to the Aspen Digital report, many believe Bitcoin will rise significantly by the end of the year.

Around 31% of respondents predicted the cryptocurrency could hit $100,000 before 2025.

Several factors behind this bullish outlook are. Investors expect upcoming U.S. interest rate cuts and favorable political developments, such as the U.S. presidential election, to boost Bitcoin's value.

Additionally, developments within the crypto industry, like the potential introduction of spot-based Bitcoin ETFs, are also driving optimism. For instance, one private wealth manager highlighted the growing ease of trading on platforms like Solana.

Another pointed to challenges like the complexity of liquid restaking tokens (LRT). However, these complexities have not dampened long-term optimism in the sector.

Challenges and Limited Allocations

Despite the optimism, the crypto landscape in Asia still faces several obstacles. Most private wealth managers allocate less than 5% of their portfolios to digital assets.

This cautious approach stems from concerns over regulatory uncertainty, fragmented market conditions, and poor user experiences.While the market is promising, widespread adoption remains hindered by these challenges.

Nonetheless, many investors are cautiously optimistic about increasing their exposure. 30% of respondents plan to increase their allocation to digital assets in the coming years.

Some family offices raised their crypto exposure from less than 5% to over 10% in 2024. Additionally, there is a growing preference for institutional-grade custody solutions.

The report shows that private wealth managers in Asia are increasingly bullish on digital assets.

With 76% of family offices now invested in cryptocurrencies, the shift toward crypto is undeniable. If the momentum is sustained, BTC could hit the targeted price level faster.

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