Crypto spreads to wealthy in Singapore, Hong Kong: KPMG

by Arthur · October 25, 2022

KPMG reported clear appetite for digital assets among some of Singapore and Hong Kong’s wealthiest investors
All respondents have already invested in crypto held bitcoin, but less than half disclosed DeFi tokens

Big Four accounting firm KPMG has indicated strong interest in the crypto market from the wealthy elite in Singapore and Hong Kong.

KPMG surveyed 30 family offices and high net worth individuals across both regions for its first Investing in Digital Assets report.

58% reported skin in the crypto game, while another 34% intend to allocate funds to bitcoin, stablecoins and ether, as well as decentralized finance (DeFi) opportunities.

KPMG only collected responses from investors whose funds under management ranged between USD 10 and USD 500 million. Of the 58% already invested in crypto:

100% held bitcoin,
87% revealed ether,
60% bought NFTs and other metaverse tokens,
47% held DeFi tokens.

Beyond the actual assets, 58% of respondents also said they invested in crypto service providers, including exchanges and software developers.

The study was carried out jointly between KPMG China and the financial company Aspen Digital. The results were taken during the second quarter of this year. At the time, markets across the board were in turmoil as macroeconomic conditions, such as rising inflation, took center stage.

KPMG found that interest in crypto has been mainly driven by the prospect of high returns, portfolio diversification and increased confidence in the market following an institutional recovery.

However, it was not bullish, with respondents saying the industry needs more mature methods of valuing crypto, the lack of which has given some investors pause.

Wealthy investors keen on crypto’s ‘store of wealth’ proposition alongside decentralized finance (source: KPMG)

Not to mention, most already invested allocated only 5% of their portfolio to the digital asset class, a number tempered by uncertainty around regulations and accounting standards.

The findings echo crypto exchange Bitstamp’s Crypto Pulse survey in April, which found that 80% of institutional investors believe crypto is poised to take over traditional investment vehicles within a decade.

Overall, KPMG found that regulatory uncertainty persists as a roadblock for major players in Singapore and Hong Kong, with investors seeking a clear regulatory framework that balances both investor protection and industry growth.

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Sebastian Sinclair

Blockwork

Senior Reporter, Asia News Desk

Sebastian Sinclair is a senior news reporter for Blockworks operating in Southeast Asia. He has experience covering the crypto market as well as certain developments affecting the industry, including regulation, business and M&As. He currently has no cryptocurrencies. Contact Sebastian via e-mail at [email protected]