According to CryptoPotato, family offices are showing an increasing interest in cryptocurrencies, with 39% of those surveyed either actively investing or considering investments in this asset class. This information comes from the 2024 BNY Mellon Wealth Management Study. Cryptocurrencies now account for 5% of portfolios, a significant increase from a decade ago.
The study reveals various motivations for this shift towards digital assets. Over half of the family offices cited the desire to stay current with emerging investment trends and opportunities. Additionally, at least 30% attribute their interest to the influence of current leadership or the next generation within the family office.
Despite the growing interest, there are still concerns about investing in cryptocurrencies. Hacking and cybercrime are the top challenges cited by those reluctant to allocate funds to digital assets. Furthermore, 74% of respondents pointed to an unclear regulatory environment as a barrier to investing in cryptocurrencies. This figure rises to 80% among non-US respondents.
In January 2024, the Securities and Exchange Commission (SEC) granted approval for the first exchange-traded funds (ETFs) that directly invest in Bitcoin. This regulatory approval has made these assets more widely accepted and accessible as investment vehicles in mainstream financial markets. However, the unclear regulatory environment remains a significant concern for potential investors.