Wealthy investors ‘are backing the metaverse’

Nine in ten High Net Worth Individuals (HNWI) now invest in digital assets such as cryptocurrencies or land in the ‘metaverse’, according to research.

Wealth Advisor Saltus says just one in ten people with at least £250,000 in investable assets have yet to invest in digital assets, a figure that is down from three in ten last year.

And it’s not just the ultra-wealthy getting involved. More than half (52%) of those with more than £3 million of investable assets are backing the metaverse, but so too are 40% of those with less than £250k

The term metaverse refers to digital ‘universes’ in which people can own virtual ‘land’ for private or commercial purposes. It remains a fledgling and somewhat nebulous concept whose definition varies depending on whom you ask, but it is beginning to attract serious financial attention and involvement.

And shared virtual environments have been around for decades in various forms, including Second Life and other massively multiplayer online games (MMOGs).

However, tech giants are betting big on their vision for the metaverse, with Facebook going as far as to rebrand as Meta. Now, Bloomberg predicts metaverse assets could be worth $80 billion by 2024.

Saltus’ research found a third of all HNWIs own land in the metaverse. The figure was higher among the 18-24 year olds of those surveyed at 44%. All of the younger cohort who have yet to invest in these so-called emerging assets say they will before the end of the year.

Saltus’ Mike Stimpson said: “Interest in digital assets continues to rise at pace and we expect this to continue, and this is particularly true among younger investors.

“But this space is still extremely volatile – both upside and downside – due to the fact it is very difficult to establish a fair value for crypto. This, combined with the immaturity of the sector and the lack of regulation, means there is significant risk for investors, which was highlighted by the bursting of the crypto bubble earlier this year.”