Despite the crypto winter, 82% of millionaires have sought advice on investing in crypto

According to a study, 82% of millionaires have sought advice on investing in cryptocurrencies despite the 2022 market downturn.

Despite the crypto market experiencing a difficult year in 2022, eight out of 10 high net worth (HNW) individuals have asked their financial advisers about including cryptocurrencies (such as Bitcoin) into their portfolios over the last 12 months, a study by deVere Group reveals.

According to the research, 82% of clients with between £1m and £5m of investable assets sought advice on cryptocurrencies and were not deterred by the bear market and adverse market conditions. Instead, they were looking to either start including or increasing their exposure to crypto.

“In 2022, the crypto market delivered its worst performance since 2018, with Bitcoin falling about 75% during the year,” explained Nigel Green, the CEO and founder of deVere Group. “The price drops came as investors reduced their exposure to risk-on assets, including stocks and crypto, due to heightened concerns about inflation and slower economic growth. Yet, against this backdrop of the so-called ‘crypto winter’, HNWs were consistently seeking advice from their financial advisers about including digital currencies into their portfolios.”

The study finds that these high-net-worth clients are increasingly aware of the inherent characteristics of cryptocurrencies and this momentum of interest is set to build further as the ‘crypto winter’ of 2022 is thawing. “Wealthy investors understand that digital currencies are the future of money, and they don’t want to be left in the past,” said Nigel Green. “If HNWs were expressing such huge interest in the 2022 bear market, as market conditions steadily improve, they’re going to be amongst the first to capitalise in the forthcoming bull run,” he concluded.