any people might wonder if it's worth investing in cryptocurrency with low prices. A new report has found that global high-rollers are spending more money than ever on crypto and consider this an essential part of their investment portfolios. They will continue doing so if their value remains stable or increases significantly over time.
According to Capgemini, a Paris-based IT services and consulting company, wealth is on the rise. In their latest wealth management study, 1 million more people worldwide joined HNWIs with high net worths last year. The total number of these individuals went up 7%, which translated into an increase from 684 million USD trillion dollars back in 2010 all way through 2021, where it reached close to 8%.
Capgemini explained that as part of its research, it spoke with 2,973 HNWIs across 24 major wealth markets in North America, Latin America, Europe, and Asia-Pacific about their investment behavior and preference for evolving asset classes such as digital assets.
The survey showed that digital asset investments are essential to HNWI portfolios. It noted the high number of advanced, particularly among those who had already bought cryptocurrencies - 71% for people under 40 years old.
The same group expressed interest in exchange-traded funds (ETFs) and metaverse-related investments.
According to the French company, the popularity of crypto and blockchain technology-related assets will likely pique the interest of wealth management firms, as explained, "as the use of digital assets (cryptocurrencies, ETFs, NFTs, metaverse-related products, and digital currencies) grows, [wealth management] firms will require product and education capabilities." Furthermore, ecosystem partnerships will be required to create a diverse portfolio of digital offerings."
The report's authors added that the rise of digital asset classes had created an increased demand for educational capabilities among HNWIs, who want to learn more about these new technologies.
Joseph Gribb, Principal and Head of Advice IT at the American investment firm Vanguard, stated, "As demand for emerging asset classes grows, firms must provide investment advice based on customer risk tolerance and differentiated experiences across multiple channels based on customer preferences."
It's no secret that the tech sector is booming, with many people becoming millionaires in just a few years. For example, Capgemini found that 30% of HNWIs it spoke to had accrued their fortune from this industry-and they were part of what we called "tech wealth" demographics.