25% of wealthy investors to include NFTs in investment mix
More than a quarter of high-net-worth investors will include NFTs, or non-fungible tokens, into their portfolios this year, a new global survey from one of the world’s largest independent financial advisory, asset management and fintech organisations has revealed.
The findings of the poll carried out by deVere Group come as momentum surrounding the new digital asset class continues to build around the world. The Mercedes-AMG Petronas Formula One team, for example, is launching the first in a series of NFT drops.
The team is introducing 11 digital art NFTs featuring Mercedes-AMG Petronas cars, created and designed by the artist Mad Dog Jones. Three of them will be available for auction during the much-anticipated Miami Grand Prix this weekend.
The deVere poll shows that of the 450+ HNW clients surveyed, 26% said that they are looking to include NFTs into their investments before the end of 2022.
The respondents are clients who currently reside in North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia and Latin America, and have more than £1m of investable assets.
An NFT is a digital asset that can be an image, audio clip or GIF and whose ownership is recorded on a tamper-proof digital ledger known as a blockchain.
Of the findings, deVere CEO and founder Nigel Green commented: “The buzz about NFTs, this exciting new digital asset class, is gaining pace.
“More and more investors around the world are understanding and valuing the potential of NFTS as major global sports franchises, fashion brands and household name artists and musicians pile into the market.”
He continued: “As the survey reveals, high-net-worth investors want a slice of the action as they appreciate that there’s inherent value in digital representations of physical things people love.
“They also know that NFTs are making business models, especially in the creative, sports and entertainment sectors, more profitable and rewarding.
“But perhaps 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.
“NFTs have a very low correlation to other assets, such as stocks and bonds, and can, therefore, lower your portfolio’s overall risk and volatility levels.”
In order to give investors access to this emerging digital asset class, earlier this year deVere launched its own NFTs platform, dV Gems.
At the launch, Nigel Green said: “Investors around the world are, understandably, eager to stake their claim in this new ecosystem.
“There’s enormous opportunity for people to be a part of the creation of the digital financial architecture - and to give our clients access to this, we've launched dV Gems.
“This platform will help clients and prospective clients spot the winners of the future. We’ll guide you to understand the new market and why we believe NFTs have a massive part to play in the future of financial investing.”
The deVere CEO concluded: “The survey shows that more than half of high-net-worth investors are seeking to include NFTs into their investment mix this year.
“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.”