Family offices are increasingly optimistic about crypto investments, with a recent report from Citi revealing that their interest has more than doubled this year. The “Global Family Office 2024 Survey Report” showed that 17% of family offices are now bullish on crypto, up from 8% in the previous year. Direct exposure to digital assets is the preferred form of investing for these entities.
Both large and small family offices, regardless of their asset size, have shown similar levels of interest in digital assets. Direct crypto investments and crypto-linked investment funds are the top choices for these investors. A quarter of respondents have either invested in digital assets or are planning to do so, with 17% classified as early adopters and 10% as “digital asset curious.”
Interestingly, most early adopters are dabbling in crypto investments, with 15% allocating less than 5% of their portfolio to digital assets. Family offices still prefer direct exposure to crypto, with 24% of surveyed entities investing directly in digital assets. Exchange-traded funds (ETFs) are also popular, with 18% of family offices reporting exposure through this avenue.
Large family offices are more interested in tokenized real-world assets (RWA) compared to smaller entities, while smaller family offices have a greater appetite for derivatives. Despite similar exposure through stablecoins, small family offices have a higher interest in non-fungible tokens (NFTs) compared to larger firms.
The report highlighted that family offices still lack proper education about crypto, as two-thirds of participants are undecided about which digital asset products to explore. The Asia Pacific region leads in digital asset adoption, with 37% of family offices invested or interested in investing in digital assets. On the other hand, Latin American family offices showed the least interest, with 83% not prioritizing an allocation in digital assets.
Despite the growing interest in crypto investments, the report noted that there is more interest in reducing exposure to digital assets compared to increasing it. This indicates a cautious approach among family offices, with 73% of surveyed entities not prioritizing crypto investments.
Overall, the report provides valuable insights into the evolving landscape of crypto investments among family offices, highlighting the diverse preferences and approaches taken by these entities.