A new report from Aspen Digital shows that 76% of private assets in Asia have invested in cryptocurrencies, a significant increase from 2022, thanks to clearer regulations and the launch of ETFs.
According to the latest report by Aspen Digital, a company specializing in investment and consulting in the digital asset sector, the cryptocurrency market is attracting increasing interest from private investors in Asia. Specifically, the report estimates that 76% of private assets in the region have participated in this market, and this figure is expected to continue to rise, with 18% more planning to invest in the future.
The growth marks a significant step forward compared to 2022, when Aspen Digital conducted a similar survey in Hong Kong and only recorded 58% of participants having invested in cryptocurrencies. The latest report is based on a survey of 80 family offices and high-net-worth individuals (HNWIs) across Asia, primarily managing assets ranging from $10 million to $500 million.
Increased investment demand due to ETFs and clearer regulations
Although the majority of investors (70%) currently allocate less than 5% of their investment portfolios to digital assets, some have started to increase this ratio to over 10% by 2024. The increase is driven by several factors, including the approval of spot Bitcoin Exchange Traded Funds (ETFs) in the US and Hong Kong, as well as positive signals regarding a clearer legal framework for the cryptocurrency market.
The Aspen Digital report shows that 53% of the surveyed investors access the cryptocurrency market through funds or ETFs. Spot Bitcoin ETFs began trading in the US in January 2024, while spot Bitcoin and Ether ETFs were launched in Hong Kong in April. The emergence of professionally managed investment products has helped reduce the barriers to entry for traditional investors.
This trend is also reflected in the Global Crypto Hedge Fund Report by AIMA and PwC. Their survey of nearly 100 hedge funds across 6 regions, managing a total of $124.5 billion in assets, shows that the exposure to cryptocurrencies has increased from 29% in 2023 to 47% in 2024. These funds cited the clarity of regulations and the launch of cryptocurrency ETFs in the US and Asia as the key drivers behind this change.
Additionally, the Aspen Digital report also shows increasing interest from Asian investors in blockchain technology applications, particularly decentralized finance (DeFi), artificial intelligence (AI), and decentralized physical infrastructure networks (DePIN). Two-thirds of the respondents expressed interest in DeFi, while 61% said they are interested in AI and DePIN.
Optimism about the outlook for Bit is also a notable factor. The report indicates that 31% of investors expect the price of Bit to reach $100,000 by the end of 2024.
