Reflecting this comparatively sturdy demand, 44% of the 830 respondents to a query on asset allocation mentioned they might really feel comfy with over 5% of their funding portfolio invested in cryptocurrencies in 2021. This determine was over 10% for almost one in 5 (18%) UAE residents.
“There’s clearly rising demand for this new and attractive asset class, particularly given the returns it could actually doubtlessly supply traders,” mentioned Stefan Terry, World Senior Accomplice within the UAE workplace of Holborn Belongings.
“The survey outcomes additionally spotlight the sturdy curiosity regionally in additional schooling about cryptocurrencies as a precursor for making portfolio allocations,” added Terry, who was the winner of the ‘Rising Expertise’ award from Worldwide Funding in 2020.
Holborn Belongings plans to create native programmes to ship this later within the yr. These will leverage demand within the UAE and construct on the efforts within the agency’s South African workplace, which is internet hosting some occasions within the coming weeks to coach traders concerning the professionals and cons of cryptocurrencies.
Age and nationality create demographic divide
The variations in survey responses throughout completely different sections of society within the UAE are notably noteworthy.
As an example, 18-24 yr olds are probably the most bullish on cryptocurrencies, with a 3rd of respondents contemplating them to be ‘thrilling funding alternatives’, in contrast with 17% within the 45+ age group. In the meantime, solely 10% of the youngest age group needs these belongings to be closely regulated, versus 17% for older traders. And whereas simply 12% of younger respondents take into account crypto belongings to be a fad, this rises to twenty% among the many 45 yr olds and above.
There are additionally some placing tendencies when it comes to nationality. For instance, Emiratis are the keenest group to put money into cryptocurrencies, at 33%, in contrast with Arab expats (23%), Asian residents (24%) and Westerners (19%).
That is constant on the different finish of the spectrum; solely 7% of Emirati need crypto belongings to be closely regulated, whereas almost one in 4 Western expats (24%) who responded to the survey selected this selection.
There’s additionally a marked hole in consolation ranges amongst UAE traders when shopping for crypto belongings. A 3rd of Emirati respondents, as an illustration, mentioned a 5-10% allocation would swimsuit them, with 19% choosing a 0-2% holding.
For Western expats, against this, 51% of respondents mentioned they might solely allocate 0-2% to cryptocurrencies, and simply 14% could be comfy with a 5-10% allocation.
About Holborn Belongings
Established in 1998, Holborn Belongings is a number one, award-winning international monetary companies firm that gives high quality monetary recommendation and wealth administration options to the discerning worldwide expatriate. As a British, family-owned and run firm we satisfaction ourselves on delivering a superior expertise to roughly 20,000 shoppers, by way of our 11 worldwide workplaces, all supported by over 450 personnel, together with 200 monetary advisers.
SOURCE Holborn Belongings