The Family Office is a multibillion-dollar private investment firm, and the new research reveals the firm’s recent fascination with cryptography. According to a Campden Wealth report, cryptocurrencies account for 1 percent of the average family office’s portfolio.
Given that the average family office manages $1 billion in assets, that means each family office holds almost $ 11 million in cryptocurrencies. According to Campden Wealth, there are 7,300 single-family offices in the world in 2019. (anecdotal evidence suggests there are more offices today). If each of these family offices owns $ 11 million in cryptocurrency, their total crypto assets will be $ 80.3 billion.
As of August this year, $ 1.9 trillion had been invested in cryptocurrencies, according to CoinMarketCap. The family office now owns around 4.2 percent of the overall Bitcoin market.
Approximately one-third of family offices in North America invest in cryptocurrency. Most millionaires in the United States do not have a family office, although the Rockefellers established the concept of a private office for managing your money in the last century.
These highly sophisticated offices now employ an entire team dedicated to managing billions of dollars in personal assets, but they rarely publicize their existence or report their findings.
“We have begun investing a tiny bit of cryptocurrencies on the venture side,” the CEO of the Connecticut Family Office said in a North American Family Office report, “but the funding has been very successful and has expanded sevenfold over the past year.” That it is a suitable addition to the portfolio”.
Many people in the family office industry agree with this viewpoint. According to Campden Wealth’s survey, 28 percent of respondents intend to expand their crypto investment next year.
“At first, we saw allocations of $ 2 million and $ 3 million. Ticket prices have risen to between $5 million and $10 million, with significant allocators now seeking tens of millions of dollars. increase. [in terms of dollars] “As a beginning point,” Anatoly Crachilov, CEO of Nickel Digital, a digital asset manager specializing in family offices, said.
Several wealthy, notably Alan Howard and Paul Tudor Jones, have expressed their support for Bitcoin publicly. “At initially, they believed that a pandemic would lead to inflation, so they included crypto in their portfolio,” Kratilov explains.
It wasn’t just bought by the Bitcoin Family Office, either. Many of the world’s most popular blockchain currencies were initially the most purchased, but Crachilov argues that many are now diversified. “Bitcoin is far from the most promising crypto asset.”
However, not all family office owners are cryptographic believers. In the coming year, 4 percent of family offices around the world said they would cut their Bitcoin exposure.
“Cryptocurrencies are so unpredictable that we don’t consider them currencies,” an Ohio Family Office employee remarked. If there are big changes, how can we become currencies? That is something we agree on. “I have no intention of doing so.”
Gooch stated that the Family Office has begun to invest in cryptocurrency. If returns continue to make their affluent recipients richer, family offices can invest considerably more money in cryptocurrencies and increase their stake to more than 4percent.
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