Family offices opt for cryptos to broaden investment portfolio
by: Dynasty GI2021-12-06
Research by wealth specialist Campden Wealth suggest that the average family office now has 1% of its portfolio invested in cryptos, the equivalent of an average of US$ 11 million per family-owned funds.
According to a report on Forbes.com, this average would put the total invested in crypto by such offices at around US$ 80 billion, or the equivalent of 4.2% of the entire cryptocurrency market. Family offices are the organisations responsible for the investment of assets owned by wealthy families around the world – a concept first created last century by the Rockefeller family. These offices now tend to have entire teams managing a family’s private wealth and are also known for their discretion. The report published by Campden Wealth states that 28% of the family offices consulted are currently planning to increase their investment in cryptos next year. Forbes quotes Anatoly Crachilov, from digital asset management company Nickel Digital, as saying that whereas previous investments were around US$ 2 to 3 million, his company is now seeing demand for tens of millions of dollars in crypto assets as the starting point for some family offices. Crachilov also stated that investors are going beyond Bitcoin and seeking to diversify, adding that ‘there are far more promising crypto assets I would bet on rather than Bitcoin’.Eduardo Carvalho, the founder and CEO of Dynasty Global Investments AG, commented:
"I have taken part in the recent Ritossa Family Office summits in Monaco and Dubai and I can see the growing interest in crypto assets by family offices from all corners of the world that go well beyond all the talk around Bitcoin."
This trend, he says, can help bring fresh investments to the crypto world but, he adds, “it can also have a stabilising factor since family offices, like other major asset holders such as pension funds, think long term and don’t get drawn into speculation, so their growing interest in cryptos is because they see crypto and Blockchain-based financial products are here to stay”.