Capgemini report says the world’s wealthiest individuals invested in crypto

  • As per the report, a staggering 91 percent of HNWIs who have invested in crypto are under the age of 40.
  • However, many crypto billionaires have also seen a massive erosion in their fortunes during the recent market crash.

French IT services and consulting giant Capgemini recently published a report which suggests that a staggering 71 percent of 2,973 high net worth individuals (HNWIs) worldwide have invested in cryptocurrencies. As part of its “World Wealth Report”, Capgemini’s list of HNWIs includes millionaires.

Among all the HNWIs polled, a majority (54 percent) had a net worth of under $30 million. The remaining 46 percent had a net worth of even more. A staggering 91 percent of the investors under the age of 40 have invested in digital assets. Interestingly, the report suggests that cryptocurrencies remain one of the most sought-after investments for these HNWIs. This also includes crypto exchange-trade-funds (ETFs) as well as metaverse investments.

But there isn’t any clear picture of the size of the crypto investments made by HNWIs. As per data up to January 2022, 14 percent of portfolios were allocated to “alternative investments”. This also includes foreign currencies, commodities, hedge funds, and private equities. The report from Capgemini notes:

Globally, HNWIs maintained the traditional asset class status-quo in their 2021 allocations but were vocal about emerging assets (ESG, cryptocurrencies, and NFTs) and their desire for better and personalized digital offerings. At the same time, central banks were actively exploring digital currencies. Our survey reveals that 70% of HNWIs have invested in digital assets, emphasizing the need for firms to create a diversified portfolio of digital offers.

Crypto billionaires’ fortune disappears in crash

The recent crypto market crash since the beginning of this year has seen investors’ wealth eroding very fast. In fact, the speed of the market crash has accelerated in the last two months as the Federal Reserve has announced aggressive quantitative tightening (QT) measures and interest rate hikes.

Crypto billionaires have lost massive fortunes amid the recent market turmoil. Some of them who have seen their fortunes dwindling are Binance founder Changpeng Zhao, Gemini co-founders Tyler and Cameron Winklevoss, FTX exchange founder Sam Bankman-Fried, Coinbase founders Brian Armstrong and Fred Ehrsam. Galaxy Digital CEO and Wall Street veteran Mike Novogratz also saw his fortune crashing.

In November 2021, when the market was at its all-time high, Binance founder Changpeng Zhao had a fortune of $95.8 billion. According to Bloomberg’s Billionaires Index, Zhao’s fortune now stands close to $10.5 billion, as of June 13.

Brian Armstrong’s estimated net worth by November 2021 was $13.7 billion. Now, it has decreased to $2.1 billion. FTX’s Sam Bankman-Fried saw his volume crashing from $15.1 billion to $8.9 billion. As per reports, the Winklevoss brothers are doing the best. As per data, Tyler and Cameron Winklevoss has lost $800 million with each having a net portfolio worth of just $3 billion.

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