Known for their entrepreneurial spirit, family offices are eager to embrace new investment opportunities.
Cryptocurrencies make up 5% of portfolios, an allocation that would have been unthinkable a decade ago, and opinions remain sharply divided on the role of the asset class.
According to the recently released 2024 BNY Mellon Wealth Management Survey, approximately 39% of family offices surveyed are actively investing or considering investing in cryptocurrencies, highlighting strong interest in this modern asset class.
A variety of motivations influence the investment decision of family offices considering cryptocurrencies, with over half citing a desire to keep up with new investment trends and opportunities.
Additionally, over 30% believe that interest in digital assets is being influenced by current or next-generation leaders within family offices.
However, some experts remain hesitant to invest in the asset class, with concerns over hacking and cybercrime being the top challenge cited by those reluctant to allocate funds to the asset class.
“True to their entrepreneurial nature, family offices have demonstrated a readiness and willingness to jump into new opportunities. Cryptocurrencies make up 5% of their portfolios, an allocation that would have been unthinkable 10 years ago.”
In January 2024, the U.S. Securities and Exchange Commission (SEC) approved the first exchange-traded fund (ETF) that invests directly in Bitcoin. This regulatory approval paves the way for these assets to become more widely accepted in mainstream financial markets and become an accessible investment vehicle.
Nevertheless, an overwhelming majority, 74%, point to an unclear regulatory environment as a barrier to investing in cryptocurrencies, a figure that rises to 80% for respondents outside the United States.
