London, United Kingdom stands at a significant juncture as Bitcoin surges past the $100,000 mark. This milestone has sparked a flurry of questions and analyses. Financial planning firm Saltus has conducted extensive research to understand the cryptocurrency holdings and intentions of high net worth individuals (HNWIs) in the UK.

Unraveling the Crypto Temptation of High Net Worth Individuals

Bitcoin's $100k Milestone and HNWIs' Crypto Holdings

December 17, 2024 marked a historic moment as Bitcoin reached the $100,000 threshold. According to Saltus' research involving 2,000 individuals with investible assets of over £250,000, fewer than half of HNWIs in the UK currently own any cryptocurrency. Just four in ten (40%) hold crypto assets, while 46% plan to invest in the future and 16% have no plans to hold or invest.This disparity in crypto ownership among different age groups is notable. Older HNWIs, particularly those aged over 55, are less likely to be drawn to crypto. A significant majority (69%) of this age group do not hold any cryptocurrency and have no intentions to do so in the future. In contrast, 7% of those aged 18-24, 9% of 25-34 year olds, and 8% of 35-44 year olds are more inclined towards crypto.Among the middle-aged, appetite for crypto is more mixed. While 35% of 45-54 year olds currently own crypto, more than a quarter (27%) say they have no plans to do so.

The Impact of Financial Advice on HNWIs' Crypto Decisions

The Saltus research also revealed that HNWIs who have not received financial advice are far less likely to consider crypto. 67% of those who have never received any financial advice and 42% of those who last received advice more than two years ago do not hold the asset and have no plans to do so. However, those who have received advice in the last two years are more likely to invest, with 44% currently holding crypto assets and a further 48% planning to do so in the future.Mike Stimpson, Partner at Saltus, emphasizes the significance of this research. "Our research shows that a large number of high net worth individuals do not currently hold any cryptocurrency. But a significant portion, especially younger people, plan to do so. With Bitcoin surpassing the psychological $100,000 level and prices and interest continuing to rise, the temptation for more to acquire crypto for the first time is substantial and could potentially impact prices upward."He further advises that investing in cryptocurrency should be a well-considered decision. It should only be done if the individual is willing to accept the risk of losing everything and should only make up a small portion of investible assets. The age of the individual is crucial; those close to retirement or needing to realize gains should be cautious, while those able to hold the asset for longer periods may feel more confident with proper advice.

Saltus: An Industry Leader in Financial Advice

Saltus Financial Planning was launched in 2015 with the goal of becoming a leader in providing financial advice. Currently, it employs over 300 people and manages over £8bn for its clients. This demonstrates its expertise and credibility in the financial industry.In conclusion, Bitcoin's ascent to $100k has brought to the forefront the crypto attitudes and decisions of high net worth individuals. The research by Saltus provides valuable insights into this emerging trend and the factors influencing HNWIs' choices. As the cryptocurrency market continues to evolve, these findings will play a crucial role in shaping the future of the industry.