In his Wealth Report, Knight Frank stated that 18% of global UHNWIs now hold cryptocurrencies or tokens.
Highlight
- Nearly 20 percent of Indian UHNWIs invested in crypto assets in 2021
- Wealth Report says 11 percent of global UHNWIs have invested in NFTs
- In 2018, The Wealth Report was the first to explore the potential of blockchain.
According to a report by Knight Frank, around 20 percent of Indian Ultra-High-Net-Worth Individuals (UHNWIs) invested in crypto assets last year amid the growing popularity of cryptocurrencies and NFTs. UHNWIs are those who have a net worth of USD 30 million (about Rs 226 crore) or more.
In his Wealth Report released on Tuesday, Knight Frank said that 18% of global UHNWIs now hold cryptocurrencies or tokens, and 11% have invested in NFTs (fungible tokens). Knight Frank India said in a statement, “In the case of India, 18 per cent of the ultra-wealthy have invested in crypto assets. 10 per cent of them are being invested in cryptocurrencies/tokens and 8 per cent are being invested in NFTs. Is.”
In 2018, when The Wealth Report first explored the potential of the building blocks of blockchain, cryptocurrencies and NFTs, a third of survey respondents said they doubted their customers had even heard of them and only 14% believed that blockchain would significantly affect how money was managed.
“2021 was the year that crypto investments went mainstream. The growth of this sector was certainly lucrative. According to The Economist magazine, the global value of crypto assets stood at USD 2.4 trillion at the end of 2021, 12 times from the beginning of 2020 increase,” the report said. It added that there are now over 8,000 cryptocurrencies in circulation for investors to choose from, as well as myriad NFTs.
A third of the survey respondents said security concerns were behind their reluctance to invest. But the biggest hurdle — cited by more than 60 percent — is that UHNWIs still don’t understand the market well enough to feel confident enough to jump into it. “Volatility is also a significant concern, although for many traders that is the main attraction,” the report added.
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