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High-Net-Worth Investors Allocate 1-3% of Their Wealth to Cryptocurrencies
According to Michael Sonnenfeld, the founder of Tiger21, a network of high-net-worth investors and executives, Bitcoin (BTC) has become a store of value and an instability hedge for the world’s wealthiest investors. The members of Tiger21, who collectively have a net worth of $200 billion, have allocated around 1-3% of their wealth into crypto, which amounts to around $6 billion.
Crypto as a Store of Value and Instability Hedge
“The areas of digital currencies remain really exciting,” Sonnenfeld said on CNBC. “We have some members who are all in: it’s become a gold substitute. Gold is for traditionalists, bitcoin a bit new age, but they often play the same role. They are perceived as storehouses of value.”
Bitcoin’s Rising Value
Bitcoin is up over 125% during the last year, according to CoinDesk Indices data, and is currently trading above $97,000.
Cash Holdings at a 17-Year Low
Sonnenfeld also said that members’ cash holdings have hit a 17-year low, which suggests high market confidence.
Conclusion
The increasing allocation of high-net-worth investors to cryptocurrencies, particularly Bitcoin, is a testament to its growing allure as a store of value and an instability hedge. As the global economy continues to navigate uncertain times, investors are seeking alternative assets that can provide protection and growth. Bitcoin, with its limited supply and decentralized nature, is becoming an attractive option for those seeking a safe-haven asset.
FAQs
- What is Tiger21? Tiger21 is a network of high-net-worth investors and executives.
- How much money do the members of Tiger21 have? The members of Tiger21 collectively have a net worth of $200 billion.
- How much of their wealth do they invest in cryptocurrencies? The members of Tiger21 have allocated around 1-3% of their wealth into crypto, which amounts to around $6 billion.
- What is the current value of Bitcoin? Bitcoin is currently trading above $97,000.
- Why do high-net-worth investors invest in Bitcoin? High-net-worth investors invest in Bitcoin as a store of value and an instability hedge.
