A new report published on Tuesday by French IT services and consulting multinational Capgemini suggests that 71% of 2,973 high net worth individuals (HNWIs) polled globally have invested in digital assets.  

For the purposes of its “World Wealth Report,” Capgemini defined HNWIs as millionaires. Of those polled, 54% had a net worth of under $30 million and the remaining 46% had more. 

Furthermore, 91% of respondents under the age of 40 had invested in digital assets. The report stated that cryptocurrencies were considered the favorite digital asset among investors, with other “sought-after” digital assets including exchange-traded funds (ETFs) and metaverse investments.

However, the size of the crypto investments made by HNWIs remained speculative. As of January this year, 14% of portfolios were allocated to “alternative investments,” which also include commodities, foreign currencies, private equity and hedge funds. 

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Still, that figure has steadily increased from 2018, when only 9% of HNWI portfolios comprised “alternative investments.” 

The timing of the report should also be noted. When it was published on Tuesday, the report described crypto’s market cap as being greater than $2 trillion; today, the number is in fact closer to $900 billion. 

The last time crypto had a market capitalization of over $2 trillion was April 5 this year, according to CoinMarketCap

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Family offices and crypto

In Summer 2021, multinational investment banking giant Goldman Sachs published a report that said 18% of the family offices it surveyed saw cryptocurrency as a hedge against inflation. 

A family office is basically an asset manager—like Blackrock or the crypto-oriented Grayscale—but which typically only stewards the wealth of a single ultra-high-rolling individual and their family. 

Of the 150 respondents to Goldman Sachs' report, 15% already held cryptocurrencies, (among American respondents that number was 25%), while 40% of those polled were concerned about fiat currency debasement.

However, not everyone was convinced: 47% of American family offices responded that they believe crypto is not a good store of value. Just 24% of Asian respondents felt the same.

With Bitcoin testing $20,000 on Wednesday, it’s fair to say that a lot has changed in the months since the Goldman Sachs and Capgemini reports were written.

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