Family Offices Eye Increased Investments in Blockchain, Crypto

According to a report published by the professional services network Grant Thornton, family offices are considering increasing their investments in blockchain and cryptocurrency.

A majority of the family offices surveyed have already made investments in digital assets, with 38% of them dedicating an amount below 1% of their portfolio to such technologies.

Family offices may contemplate increasing their financial investment in blockchain and cryptocurrency initiatives.

Grant Thornton, a professional services network with operations in more than 147 markets and a workforce of more than 68,000 individuals, disclosed in a recent report that family offices are becoming increasingly interested in blockchain and cryptocurrencies.

35% of these offices intend to augment their blockchain investment exposure, whereas 27% anticipate a rise in cryptocurrency investments.

However, this type of organization is not unfamiliar with these two investment instruments, as over half of the offices surveyed had previously allocated a portion of their funds towards cryptocurrencies.

In reference, less than one percent of the portfolios of 38% of the companies were given to these investments.

Mian Wong, advisory director of Grant Thornton Hong Kong, stated that digital assets will continue to be essential as alternative investments despite the regulatory uncertainty surrounding cryptocurrencies.

She advocated for establishing guarantees by the national government to stabilize the virtual asset market.

More than thirty family offices have expressed interest in working with Grant Thornton Hong Kong, which has received inquiries from offices in Europe, Asia, China, Southeast Asia, and the Middle East.

A survey conducted by Goldman Sachs in June unveiled that family offices were adopting cryptocurrencies due to “additional macroeconomic developments, including higher inflation and protracted low rates, which ensued after an unprecedented year of global fiscal and monetary stimulus.”

Despite this, a mere 15% of the 150 family offices Goldman surveyed had invested in blockchain and cryptocurrency products.