Family Offices Struggling With Cryptocurrency Investment Prospects: BNY Mellon

Family offices, known for their entrepreneurial spirit, are embracing new investment opportunities.

While cryptocurrencies make up 5% of portfolios, an allocation that would have been unthinkable a decade ago, they remain surprisingly divided by the role of the asset class.

According to BNY Mellon’s recently released 2024 Wealth Management Study, approximately 39% of family offices surveyed are actively investing in or considering cryptocurrencies, highlighting strong interest in this modern asset class.

Several motivations drive the investment decisions of family offices exploring cryptocurrencies. More than half cite a desire to stay abreast of emerging investment trends and opportunities.

Additionally, 30% or more attribute their interest in digital assets to the influence of current or next-generation leadership within the family office.

However, some professionals remain hesitant to invest in the asset class. Concerns about hacking and cybercrime emerge as the main challenges cited by those reluctant to commit funds.

“True to their entrepreneurial nature, family offices are ready and willing to enter new and emerging opportunities. Cryptocurrencies make up 5% of portfolios, an allocation that would have been unthinkable a decade ago.”

In January 2024, the Securities and Exchange Commission (SEC) approved the first exchange-traded funds (ETFs) that invest directly in Bitcoin. This regulatory green light paved the way for these assets to become more widely accepted and accessible investment vehicles in mainstream financial markets.

Despite this, an overwhelming 74% also point to an unclear regulatory environment as a barrier to investing in cryptocurrencies, with this number rising to 80% among non-US respondents.

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