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Confidence in the latest asset class is growing among the richest investors, research finds.
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Wealthy investors hungry for NFTs
09 May 2022
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9 minute read
Appetite for NFTs is running hot with more than a quarter of high-net-worth investors planning to add them this year, according to the deVere Group.
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The financial advisory outfit said its wealthiest clients were using NFTs to spread their investment risks during a time of global conflict, historic interest rate rises and stagnant economic growth.
“Just when we all believed we were through the worst of the pandemic’s main economic challenges, the investment landscape shifted again,” said Nigel Green, chief executive and founder of deVere Group, one of the world’s largest fintech organisations.
“For the majority of investors, it’s about diversification. Proper diversification of a portfolio across asset class, sector, region, and currency is the best way an investor can position themselves to mitigate risks and to seize opportunities when they are presented.”
The research came despite reports that public interest in NFTs has waned. Crypto data site NonFungible released its Q1 market report back in April, which showed Google searches had more than halved since their peak in January 2022.
However, deVere’s CEO said investors are moving to top their portfolios and expect NFT investment trends will remain strong.
“Despite the headwinds, our clients around the world are telling us that they are seeking to make considerable additions to their portfolios between now and the end of the year,” confirmed the deVere CEO.
“We expect this trend will continue to grow with increasing numbers of investors wanting to own digital assets that are immutable and exchangeable, offer a store of value and potentially a decent source of returns.”
DeVere recently launched its own NFT platform, dV Gems, to increase investors’ access to this emerging digital asset class.
At the launch, deVere CEO Mr Green said: “Investors around the world are, understandably, eager to stake their claim in this new ecosystem.
“There’s an enormous opportunity for people to be a part of the creation of the digital financial architecture.”
A non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on a digital ledger such as a blockchain.
Similar to bitcoin, it acts as a certificate of ownership within that blockchain. Its value is largely determined by the market and demand and can be bought and sold just like other physical types of art.
The research poll by deVere surveyed 450 clients in Australasia and across the world, including North America, the UK, Asia, Africa, the Middle East, and Latin America. All clients surveyed have more than £1 million of investable assets.
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