68% of High-Net-Worth Individuals Plan to Be Invested in Crypto Until 2022, Survey Shows

A recently conducted survey has shown that more than two-thirds of high-net-worth individuals plan to be invested in cryptocurrencies until 2022. In the survey’s context, a high-net-worth individual was considered one with over £1 million ($1.3 million) worth of investable assets.

The survey, conducted by the Dubai-based deVere Group, an independent financial advisory organization, polled over 700 of the firm’s clients who reside in various countries, including the U.S., the U.K., Australia, Qatar, Switzerland, Spain, and Germany.

According to Irish Tech News, 68% of the survey’s respondents revealed they have invested or will invest in cryptocurrencies like bitcoin, ether, or XRP “before the end of 2022.” Nigel Green, the founder and CEO of the deVere Group, reportedly noted wealthy individuals are increasingly seeking exposure to cryptocurrencies.

He added there’s growing acceptance “that cryptocurrencies are the future of money,” and as such high-net-worth individuals aren’t prepared to “miss out on this and are rebalancing their investment portfolios towards digital assets.” Green added:

Crypto is to money what Amazon was to retail. Those surveyed clearly will not want to be the last one on the boat.

Per the deVere Group founder and CEO, individuals throughout the world are gaining interest in cryptocurrencies because of fear of missing out and some of their properties, including being borderless, “perfectly suited” for the increasing digitalization of our era, and more.

One of the reasons Green claimed was spiking interest in high-net-worth individuals was the interest younger generations have. Notably, an eToro survey conducted earlier this year revealed about 71% of millennials would invest in crypto if it was offered by traditional financial institutions.

Another reason Green listed was institutional investors coming off of the sidelines and moving into crypto. Notably, a survey conducted by Greenwich Associated for Fidelity Investments found that nearly half (47%) of institutional investors believe cryptocurrencies are worth investing in.

Back in June of last year, a study conducted by deVere Group revealed that 35% of high-net-worth individuals were planning to or had already invested in cryptocurrencies. The study polled 600 of its clients throughout the world.

CME Looks to Double Bitcoin Futures Limit, but Is This Wise?

The Chicago Mercantile Exchange (CME) has a new request for its regulator, as it looks to double open position limits on bitcoin futures contracts in the face of significant interest.

Nasdaq reports that the CME has already petitioned its regulatory body, the Commodity Futures Trading Commission (CTFC), asking for an increase from 1000 contracts per spot month to 2000 per investor. Each contract represents five BTC, so essentially, at its peak,  a single investor's total position may edge towards a monumental 10,000 BTC.

This is in direct response to the contract's recent growth which is currently depicting record levels of activity, citing $370 million being traded per day. A spokesperson for the CME noted that the idea to increase limits was proposed on the continued maturity of the market:

Based on the significant growth and acceptance of our financially-settled CME Bitcoin futures markets, as well as our analysis of the underlying bitcoin market.

However, as Nasdaq writes the increase in the upper limit of positions is somewhat superfluous. As of July, the number of open interest contracts reached an all-time high of just 6100; given this, it seems the CME may be future-proofing.

Open to Manipulation?

However, concerns remain about the limit increase, as without them, the potential for manipulation rises; often to the detriment to the underlying asset. Although, as per the CTFC website, the threat of manipulation from bitcoin futures contracts is "low":

In general, position limits are not needed for markets where the threat of market manipulation is non-existent or very low.

Instead, Nasdaq posited that this might point to a lessening on the CTFC's strict rule of bitcoin; as well as a maturing of the market in general.

Nevertheless, some believe the CME's bitcoin futures contracts do pose a significant threat to the price of BTC; with some suggesting that blatant manipulation continues unchecked within the market.

As reported, there seems to be a correlation between the expiry dates of CME bitcoin futures contracts and a lull in the price point of BTC. In several instances, a significant drop in bitcoin's price has coincided with a closure from the CME. The most recent example of this occurred on Labor Day, September 2, when bitcoin rose an extraordinary 8% shortly after the CME shut.

Crypto analyst, Alex Kruger, highlighted this, noting the large gaps which formed on the CME chart, from the price discrepancy before and after closing.

This has become a pretty accepted practice within the market. Kruger has even gone to the lengths of compiling statistics each time this phenomenon transpired:

On these occasions, bitcoin cited an average 4.6% price discrepancy following the close of the CME.

Whether this is a coincidence or the market is indeed being actively manipulated is as yet unclear. Either way, with the increase of these limits it might be only a matter of time until we know for sure.

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