Cryptocurrencies Gained Global Attention in 2017, though Yet to Penetrate the Wealth Management Industry


Cryptocurrencies gained global attention in 2017, but the wealth management industry remains cautious.

Cryptocurrency investments reached an all-time high, with total market capitalization peaking in January 2018. HNWIs are cautiously interested in holding cryptocurrencies, with 29.0% globally having a high degree of interest, and 26.9% saying they were somewhat interested.

Cryptocurrencies’ potential for investment returns and potential as a store of value are driving HNWI interest. Globally, 39.3% of HNWIs said investment return was the primary reason they would hold / purchase cryptocurrencies, while 19.3% cited the potential as an alternative store of value.

More than a quarter of the HNWIs place importance on receiving cryptocurrency information from primary wealth management firms, specially the younger generation. On the other hand, wealth management firms have been ambivalent when it comes to providing cryptocurrency information to HNWI clients.

The 26.9% of the HNWIs currently on the fence about cryptocurrencies could be a source of new assets for wealth management firms if they are able to engage in a meaningful dialogue.

HNWI Interest in Purchasing/Holding Cryptocurrencies, Q1 2018 (Global and Regions)

HNWI Interest in Purchasing/Holding Cryptocurrencies, Q1 2018 (Global and Regions)

Note: Question asked: “To what extent are you interested in purchasing/holding cryptocurrencies? Please indicate your response on a scale of 1–7 where 1 = Not at all important, 4 = Neither important nor unimportant, 7 = Extremely important”; The above percentages represent the sum of ratings 1 and 2 for “Low Interest Levels”, sum of ratings 3, 4, and 5 for “On The Fence”, and sum of 6 and 7 for “High Interest Levels”; Chart numbers and quoted percentages may not add up due to rounding
Source: Capgemini Financial Services Analysis, 2018; Capgemini Global HNW Insights Survey 2018