A growing number of Asia's private wealth managers are entering the crypto market, with some forecasting Bitcoin (BTC) to reach $100,000 by year's end, according to a report from Aspen Digital.

Digital assets have emerged as an alternative investment class for private wealth in Asia, where 76% of family offices and high-net-worth individuals are currently investing in cryptocurrencies, alongside 16% planning to do so in the future. This reflects a significant increase from 58% in 2022 who had crypto investments.

Most respondents indicated that higher returns were a primary motivation for their investments. Additionally, diversification and the need for an inflation hedge have also become important reasons for embracing digital assets.

The survey, which involved more than 80 family offices and high-net-worth individuals, was conducted in the latter half of 2024. The majority of participants managed assets between $10 million and $500 million, with 20% exceeding $500 million in assets.

Decentralized finance (DeFi) continues to be a popular area of interest, with 67% of respondents keen on DeFi's development, while 61% showed interest in artificial intelligence and decentralized physical infrastructure networks (DePin).

Looking ahead, 31% of those surveyed anticipate Bitcoin will reach at least $100,000 by the end of the fourth quarter, driven by potential interest rate cuts and market optimism surrounding the upcoming U.S. presidential election results.

Despite the positive outlook, most wealth managers are cautious with their allocations, typically investing less than 5% of their portfolios in digital assets. Challenges such as regulatory uncertainty and the fragmented nature of the crypto landscape remain significant barriers to wider adoption.

Nevertheless, 30% of participants indicated plans to increase their digital asset exposure in the future, particularly in light of recent developments like the launch of spot-based Bitcoin and Ether ETFs.