Millionaires Want In on the Crypto Space, but Wealth Management Firms Aren’t Eager to Help

A report released today highlights how wealthy individuals are increasingly interested in cryptos, but their traditional wealth management advisors aren’t warming to the space.

The improving global economy is spawning millionaires left and right.

As they seek to ways to grow their wealths, it is the crypto space that has piqued many of their interests.

This is according to the World Wealth Report 2018 (WWR) that was released Tuesday by Capgemini.

Let’s review the findings of this consulting, technology services and digital transformation firm.

Capgemini found that the improving global economy has spurred high net worth individual (HNWI) wealth to surpass the $70 trillion threshold for the first time.

HNWIs are considered to be those who are worth at least $1 million.

Registering its sixth consecutive year of gains, HNWI wealth grew 10.6%, making 2017 the second-fastest year of HNWI growth since 2011.

The report points out that cryptos reached an all-time high market capitalization in January.

While cryptos are not a major part of most HNWIs’ portfolios, there is growing interest in them as an investment tool and store of value, according to the report.

Although the wealthy are interested in holding cryptos, the stats show they are being cautious and they are not just diving right in.

The report found that 29% of HNWIs globally have a high degree of interest, while 26.9% say they are somewhat interested.

Cryptocurrency’s potential for investment returns and as a store of value are driving HNWI interest, with 71.1% of HNWIs aged 40 and below placing high importance on receiving cryptocurrency information from their primary wealth management firms, compared to 13% of HNWIs aged 60 years and above.

Where the Rich Turn for Crypto Advice

You may think that with all their wealth, HNWIs would be able to afford top notch financial advice. Most are privy to wealth management firms, but the report found that these outfits have been ambivalent when it comes to providing cryptocurrency information to HNWI clients.

In fact, according to the report only 34% of HNWIs globally say they have received cryptocurrency information from their wealth managers.

“Although regulatory uncertainty and firm caution have prevented cryptocurrencies from penetrating the wealth management industry, the strong demand for information on cryptocurrencies from younger HNWIs is likely to force wealth management firms to at least develop and offer a point of view during the months ahead.”