Crypto Investment Sees Growing Interest Among High-Net-Worth Individuals in Chile
Cryptocurrency investment is gaining popularity among high-net-worth individuals (HNWIs) in Chile, according to Christopher Storaker, CEO of Arch Finance – a crypto investment firm operating in the region. Storaker noted that professional investors in Chile have recognized the potential of digital tokens to diversify their investments and are taking advantage of the technology. The company reported an increase in the number of family offices interested in crypto, with the percentage of offices planning changes to their investment strategies or portfolio allocations doubling from 23% in 2020 to 46% in 2022.
Storaker also revealed that a study of traditional portfolios containing 60% stocks and 40% fixed income demonstrated the significant benefits of exposing portfolios to cryptoassets, with potential performance boosts ranging from 6% to 12% per year, depending on the level of exposure.
Additionally, Storaker stated that the demand for crypto is expanding as professional and sophisticated institutional players enter the market. This growing interest in cryptocurrency adoption is evident in Chile’s recent developments. In March, Mercado Pago – the fintech subsidiary of Latin American e-commerce giant Mercado Libre – introduced crypto trading functionalities to its app in Chile. This enables Chilean users to buy and sell cryptocurrencies starting at just 50 Chilean pesos (approximately $0.06).
Furthermore, the enactment of Chile’s “Fintech Law” in late 2021, signed by President Gabriel Boric, solidified the legal status of cryptoassets as digital financial assets. The law provides regulatory clarity and considers crypto assets as financial instruments that exchanges can offer their customers, as long as they comply with relevant obligations. Buda, the country’s most prominent crypto exchange, praised the law and compared it favorably to US legislation.
Buda emphasized that the law provided a space for the growth and development of the crypto market. This positive environment is reflected in the top five trading pairs observed on Buda in mid-August. The exchange’s positive outlook aligns with Chile’s broader acceptance and integration of cryptocurrencies.
Last year, a prominent MP and opposition party leader in Chile publicly acknowledged owning Ethereum (ETH) tokens. Furthermore, Bitfinex, a major crypto exchange, recently forged an investment partnership with Chile-based crypto player Orionx.
The increased interest from high-net-worth individuals and the government’s supportive regulatory framework indicate that Chile is emerging as a notable player in the Latin American crypto market.