The numbers are in and 70% of wealthy people under 40 want cryptocurrency wealth management advice.
Last week, the prominent consulting firm Capgemini SE released their World Wealth Report 2018. This highly anticipated report serves as the benchmark of high-net-worth individuals (HNWI) and wealth managers.
The big news for 2018:
- Almost 30% of HNWI want to invest in cryptocurrency
- 70% of HNWI under 40 want their asset manager to advise them on cryptocurrency investments
- Latin America leads the charge with around 60% of HNWI expressing high interest in cryptocurrency investing
It's not surprising that almost 40% of these HNWI stated high returns as the main reason for investing in cryptocurrency. The bitcoin boom of Q4 2018 was enough to make anyone with idle cash consider investing in the space but most wealthy individuals had no clue where to start. This is where an asset manager needs to step in an provide competent cryptocurrency investing advice for his or her clients.
The hurdle for HNWI in Crypto
Its clear that HNWI and young wealthy individuals want to get into cryptocurrency investing, perhaps as an alternative asset class altogether or as a pure return play. (More here) This type of investor or asset manager does not have the time for cumbersome crypto trading exchanges like Binance and Bittrex — not to mention the confusing trade logs and poor user interface for visualizing crypto investments.
Classifying crypto as an alternative asset with a relatively small allocation in an overall portfolio of assets means an asset manager’s research time should be proportional to that alternative allocation. So researching every coin, watching Bollinger Bands and RSI indicators all day, and logging trades in an Excel spreadsheet is too time-intensive for these asset managers.
The Solution
After many discussions with asset managers and HNWI, we discovered that these big spenders want 3 things:
- The ability to invest easily, quickly and securely from a trusted brand
- A simple and visual user-interface for checking their crypto position
- The ability to easily invest in multiple coins on one platform to take advantage of diversification in crypto
Thats what we’re working on at CoinPlan. We saw this gap in cryptocurrency wealth management for both HNWI, passive investors, and retail investors so we’re making it easier than ever to manage your crypto wealth. Cheers!