18 pc of super-rich Indians invested in cryptocurrencies, NFTs last year: Report

Crypto-assets such as crypto currencies and non-fungible tokens (NFT) are finding greater acceptance among super-rich people in India, especially over last year, according to a report.

As many as 18% of ultra high-net worth-individuals (UHNWIs) in India  invested in crypto assets last year, a Knight Frank report said. UHNWIs are those who have a net worth of USD 30 million (about ₹226 crore) or more.

In its Wealth Report released on Tuesday, Knight Frank said 18 per cent global UHNWIs now own cryptocurrencies or tokens, and 11 per cent have invested in NFTs (non-fungible tokens).

“In case of India, 18% of ultra-wealthy have invested in crypto assets. 10% of them being invested in cryptocurrencies/tokens and 8% being invested in NFTs,” Knight Frank India said in a statement.

In 2018, when The Wealth Report first explored the potential of blockchains, the building blocks of cryptocurrencies and NFTs, a third of the survey respondents said they doubted their clients had even heard of them and just 14 per cent reckoned that blockchains would significantly influence how wealth was managed.

“2021 was the year that crypto investments went mainstream. The sector’s growth was certainly eye-watering. According to The Economist magazine, the global value of crypto assets was USD 2.4 trillion at the end of 2021, a 12-fold increase since early 2020,” the report said.

There are now more than 8,000 cryptocurrencies in circulation for investors to choose from, as well as myriad NFTs, it added.

A third of survey respondents said security concerns were behind their reluctance to invest. But the biggest stumbling block — cited by over 60 per cent — is that UHNWIs still do not understand the market sufficiently well to feel confident enough to jump in.

“Volatility is also a significant concern, although for many traders that is the main attraction,” the report added.

(With agencies’ inputs)