The landscape of family offices towards cryptocurrency has seen a significant shift, with optimistic views more than doubling from 8% to 17% this year, according to the “Global Family Office 2024 Survey Report” by Citi, published on September 20.
This increase in interest underscores a growing curiosity around digital assets. Family offices, regardless of size—those managing less than $500 million and those with more—display a parallel enthusiasm for direct crypto investments and related investment funds.
Approximately 25% of family offices either currently invest in digital assets or plan to do so, including 17% identified as early adopters and another 10% labeled as “digital asset curious.”
Preference for Direct Exposure to Crypto
According to the survey, family offices continue to show a preference for direct investments in cryptocurrencies, with 24% reporting such exposure. Alternatively, 18% have engaged with digital assets through exchange-traded funds (ETFs).
Larger family offices exhibit greater interest in investing in tokenized real-world assets (RWAs), with reported exposure at 11%, compared to just 3% from smaller offices. Conversely, smaller family offices demonstrate a stronger inclination towards derivatives, with 8% participating in these financial tools versus 3% among larger entities.
Moreover, despite similarities in stablecoin investment, smaller family offices are significantly more involved in non-fungible tokens (NFTs), with their exposure being four times that of larger firms.
Asia Pacific at the Forefront of Digital Asset Interest
Despite rising interest, the report noted a notable lack of educational resources surrounding cryptocurrency, as two-thirds of family offices are still unsure about which digital asset products to pursue.
Regionally, the Asia Pacific stands out as a leader in digital asset engagement, with 37% of family offices already invested or expressing interest. Notably, 5% in this region have allocated over 10% of their investable assets to digital assets.
In contrast, Latin American family offices appear the most hesitant, with a staggering 83% not considering digital assets in their investment strategies.
The report also highlights an interesting trend: the net intent to increase allocations to digital assets stands at -11%, indicating a higher tendency among family offices to reduce their involvement rather than expand it, despite a generally optimistic market sentiment.
In summary, crypto investment emerges as a secondary priority for a significant majority (73%) of the family offices surveyed.