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.

Bitfinex Wants to Offer 100x Leverage For Crypto Derivatives Trading

Michael LaVere
  • Bitfinex will offer 100x leverage trading for cryptocurrency derivatives
  • According to the exchange's CTO, the hedging product is "ready for prime time"

Cryptocurrency exchange Bitfinex revealed it wants to offer derivatives products with up to 100x leverage for cryptocurrency traders. 

Hedging On Cryptocurrency Derivatives

Chief Technology Officer Paolo Ardoino told The Block on June 25 that the cryptocurrency exchange was ready to ship a 100x leverage product for certain users. According to the post, the project has been under development for some time and is “now ready for prime time.” 

The product was referenced in last month’s whitepaper published by Bitfinex for its $1 billion private token sale of LEO, stating

“Qualified Bitfinex account holders will be able to trade a new hedging product through a derivatives wallet.”

The whitepaper originally claimed that the new hedging mechanism would be released by the end of June, a timetable that fits with Ardoino’s “ready for prime time” statement. 

Ardoino confirmed that only “verified” customers will be allowed access to the product, given the risks involved in such highly leveraged trades. 

The CTO also took to Twitter to quell user concerns over Bitfinex’s existing 3.3x margin trading. Ardoino explained 100x leverage will be “optional,” and that their current leveraged trading products will be unaffected by the release. 

Big Risk, Big Reward

Bitfinex is looking to compete with rival exchange BitMEX, who already offers 100x leverage through its bitcoin perpetual swap contract. However, Bitfinex claims its product is designed as a legitimate hedging tool for clients, rather than a gambling mechanism. 

Max Boonen, CEO of trading firm B2C2, believes the product will only appeal to retail hedgers, as large investors will shy away from the risks involved in 100x trading. 

According to Boonen, 

“There’s nothing wrong inherently about 100x. But as a commercial hedger you want lower leverage margin. The larger investor wouldn’t want to take the risk of 100X, typically. They don’t want to go balls to the wall.”

The cryptocurrency derivatives market has been heating up. Last week bitcoin-bull Mike Novogratz’s Galaxy Digital announced plans to offer cryptocurrency options contracts.

Binance has also reportedly been exploring futures trading. On June 24, Binance CEO Changpeng Zhao tweeted the exchange had executed its first margin liquidation for a BTC short.