Less Than 40% Of Millionaires Are Getting Cryptocurrency Advice

Yesterday, Capgemini released a survey which showed that 29% of wealthy individuals have a lot of interest in investing in virtual currency and aren’t getting enough advice from their wealth managers. The data is acquired through annual survey from Capgemini’s. In the latest release, it showed that as well as the previously mentioned 29%, an extra 27% (26.9%) are “on the fence” in regard to virtual currency investment. This means that more than half of HNWIs are aware of or are interested in cryptocurrency. The Paris-based company consulting corporation, Capegemeni (not to be confused with Capgemini) defines HNWIs as people whose wealth mean that they can invest at least $1 million, excluding holdings such as real estate, artwork and vehicles. At the start of this year, there were approximately around 15 million people like this around the globe. Collectively, this demographic controls more than $70 trillion with Capgemini expecting to see that figure grow to over $100 trillion within the next ten years. The results of the survey found that over 70% of the millionaires, that were aged 40 and below, were placing “high importance” on getting information regarding cryptocurrency from their management firms. The same goes for the 13% who were aged 60 and over. Just under 35% of the millionaires said that they had received information from their wealth managers regarding cryptocurrency. This boosts the stereotype of wealth managers not being up to date within the industry and rather being behind the times. It also shows that a market force could go some way in the direction of explaining the more than 160 new cryptocurrency hedge funds which were created in 2017. Over the whole of last year, these funds saw a great amount of growth in profit. Even in 2018, we saw memorable developments such as new cryptocurrency investors funds being established by those from BlackRock and Goldman Sachs. We also saw Venrock signing with a cryptocurrency investment fund as well as seeing Soros Fund management allegedly looking into the sector in April earlier this year. However, the Financial Times have recently published a report that shows that cryptocurrency hedge funds have had their profits dive by over 30% in 2018 and nine have been completely shut down.