Issue #17: Family Offices Embracing Digital Assets

Wealthy families are increasing buying bitcoin, Ethereum, and other digital assets as part of their
multi-generational approach to investing.

These clients are routinely served by investment advisors operating what are called “family offices” – elite financial planning firms that cater to the wealthiest Americans. Typically, clients must have a net worth of $50 million or more to be accepted as client by these firms.

The trend to add crypto to the portfolios of ultra-high-net-worth clients is highlighted in a new Global Family Office Survey from BNY Mellon Wealth Management. A generation ago, younger family members advocated investing in new technologies – which then meant the internet. Today’s younger generation focuses on digital assets and ESG (environmental, social, governance) investing strategies.
Nearly 45% of family offices current own digital assets, and 72% of them plan to increase their exposure, according to the study. The overwhelming reason, say 70% of those surveyed: keeping up with new investment trends. Indeed, 61% say digital assets are good investment opportunities.

The study is important because family offices are regarded as trend leaders in the investment advisory field. Advisors who serve less affluent investors are heavily influenced by family offices. As a result, their adoption of crypto suggests that advisors serving everyday investors are likely to start recommending digital assets to their own clients soon.