High-net-worth individuals in Chile show growing interest in crypto investment
According to Christopher Storaker, CEO of Arch Finance, high-net-worth individuals in Chile are increasingly interested in crypto investment. Storaker notes a significant shift in the mindset of professional investors who recognize the potential of crypto tokens for diversifying their portfolios.
Uptick in family offices investing in crypto
Arch Finance has observed an increase in the number of family offices in Chile that are exploring crypto investments. The percentage of family offices intending to make changes to their investment strategies or portfolio allocations doubled from 23% in 2020 to 46% in 2022.
Crypto exposure can boost portfolio performance
Storaker explains that even a minimal exposure to cryptoassets, ranging from 1% to 5%, can significantly enhance portfolio performance. He suggests that family office portfolios could potentially see an annual return increase of 6% to 12% based on their level of crypto exposure.
Rising crypto adoption in Chile
Chile is experiencing a rise in crypto adoption. In March, Mercado Pago, the fintech arm of Mercado Libre, added crypto trading functions to its app in Chile. The country’s “Fintech Law,” signed by President Gabriel Boric, grants cryptoassets legal status as digital financial assets, providing clarity on the legality of exchange activities.
Positive impact of Fintech Law on crypto market growth
The Fintech Law in Chile has created a favorable environment for the growth and development of the crypto market. The law considers crypto assets as financial instruments that exchanges can offer, as long as they comply with relevant obligations. This has contributed to the success of crypto exchange platforms like Buda.
Hot Take:
The growing interest of high-net-worth individuals and family offices in crypto investment in Chile demonstrates the increasing recognition of its potential for portfolio diversification and performance enhancement. With the country’s supportive regulatory framework, Chile has the potential to become a significant player in the Latin American crypto market.
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