According to a new survey conducted by BNY Mellon Wealth Management with The Harris Poll, 20 percent of family offices are actively investing in cryptocurrencies. As such, cryptos are no longer considered a niche investment for the wealthy. As Kriptokoin.com, we provide the details…
Family offices gravitate towards the cryptocurrency space
According to the survey, 23 percent of wealthy people said they had limited exposure to crypto, while a third reported that they had “discovered” investing in crypto. Others said they have no investments or interests in the asset class. The survey, conducted in late 2021, included 200 family offices managing at least $150 million in assets. Fifty-six were single-family offices and 144 were multi-family offices. Half were US-based.
When it comes to portfolio strategy, it is considered a significant shift as crypto becomes an option for family offices, which are generally more conservative than institutional investors. Traditionally, family offices have shunned highly volatile assets like crypto in an effort to protect wealth rather than maximize returns. A survey conducted by Fidelity from late 2020 to spring 2021 revealed that 47% of family offices invest in digital assets.
Ethereum and Bitcoin gain traction
According to Pat LaVecchia, CEO of Oasis Pro Markets, family offices that previously offered opportunities to leverage crypto don’t want to miss the opportunity again. A family office said it refused to invest in Coinbase six years ago when it was worth only $415 million. Now Coinbase has a market cap of around $40 billion. The influence of younger heirs has also inspired them to invest in family offices, as 45% of respondents said the next generation of heirs are interested in cryptocurrency.
According to the BNY Mellon survey, the most popular reason cited for investing in crypto was to keep up with new investment trends. Of family offices, 61 percent opted for investments limited to accredited investors using futures-based crypto ETFs. The second most popular option was digital currency exchanges like Coinbase. LaVecchia said that they are generally cautious in their portfolio strategies and turn to Bitcoin and Ethereum.
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