Are cryptocurrencies becoming a go-to for high-net-worth investors?
Recent developments suggest that the tides are changing in a big way. What was once seen as a risky and volatile asset is now gaining serious traction among the world’s wealthiest individuals.
From exclusive investment clubs to prominent figures backing digital assets, the shift is hard to ignore.
Let’s take a closer look at how this trend is unfolding and what’s driving the change.
Michael Sonnenfeldt, founder and chairman of TIGER 21, recently highlighted his firm’s growing interest in cryptocurrencies. Speaking with the media, Sonnenfeldt revealed that crypto now makes up 1% to 3% of the firm’s investment portfolio. Since TIGER 21 manages over $200 billion in assets, this means they have around $6 billion invested in cryptocurrencies.
TIGER 21 is an exclusive investment group that operates on an invitation-only basis. To join, individuals need at least $20 million in investable assets. The firm currently has fewer than 1,600 members.
Notably, some of these members are fully invested in cryptocurrencies, reflecting a shift toward digital assets among wealthy investors.
Sonnenfeldt also compared Bitcoin, the largest cryptocurrency, to gold, pointing out how it serves as a store of value, especially during times of economic uncertainty. He highlighted how people in financially troubled countries like Argentina and Lebanon are turning to Bitcoin to preserve their wealth, showing how Bitcoin is becoming more widely accepted as a hedge against instability.
The political stance in the US towards the cryptocurrency industry shifted in favour of the sector following the victory of Donald Trump over Kamala Harris. The newly inducted Trump administration recently initiated strong measures to establish a clear crypto regulatory framework.
Experts think that the initiatives taken by the new US regime to create a clear regulatory framework for digital assets may have influenced many high-net-worth investors to rethink their approach to cryptocurrencies.
Although TIGER 21 continues to focus on traditional investments like real estate and private equity, their increasing interest in crypto signals a broader trend. Despite crypto being a smaller part of their portfolio, this growing allocation shows that more elite investors are taking digital assets seriously.
Even with the rising interest in cryptocurrencies, the market remains volatile. At the beginning of February, the total market cap of crypto stood at $3.45 trillion. However, within the first two days, the market dropped 8.09%. Though it climbed by 3.13% on February 3, it fell again by 5.16% between February 4 and 5. Currently, the market cap is at $3.16 trillion, 8.93% below its monthly peak.
In conclusion, TIGER 21’s growing investment in cryptocurrencies reflects a larger shift among high-net-worth individuals. With changes in US regulations and Bitcoin being recognized as a store of value, institutional interest in digital assets continues to rise.
While crypto still represents a small portion of TIGER 21’s portfolio, its increasing presence suggests that more wealthy investors may follow suit, potentially driving broader crypto adoption in the future.
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