Cryptocurrency's rise in family office investment considerations
As the meteoric rise of cryptocurrencies continue, here's why some family offices are exploring Bitcoin as an investment strategy.
bitcoin for family offices

What you need to know

  • As cryptocurrency continues to move from the fringe to the mainstream, more family offices are exploring digital assets, such as Bitcoin, as an investment strategy.
  • While initial concerns surrounding Bitcoin had always been the associated risk, in the face of the market-wide volatility encountered over the past few years, it proved itself to be a viable risk mitigation solution.
  • This is especially true for family offices, where capital is traditionally patient and executed with a long-term view in mind, meaning its potential volatility poses less of a concern than with those with shorter investment timelines.
Investments Updated on October 21, 2022

The meteoric rise of digital assets, and Bitcoin, in particular, is undeniable. As the pandemic-ravaged world was catapulted into a new way of life at almost every level, the geopolitical environment became increasingly destabilised, global debt reached record highs, the need for increased monetary stimulus grew, and interest rate projections flattened. These events left economists questioning the future of the world’s declining fiat currencies and investors looking for avenues to decrease their reliance on the failing financial system.

In the face of these challenges, some of the world’s savviest institutions and investors have shifted their focus to decentralised finance, further diversifying their portfolios into digital assets as part of their risk mitigation strategies. And one of those primary investments of choice is Bitcoin.

What started as a trend, seems to have settled into the mainstream, and it has not escaped family offices‘ attention. According to Nelson Minier, Head of OTC Sales and Trading at Kraken, “Over the past couple of years, there has been an increased general interest in the market from family offices in crypto assets. This has been due to the increase in money printing, which has distorted the traditional market valuations to historically high levels.”

About the Authors

Francois Botha

Francois Botha

Founder & CEO

Francois believes that the next generation of family leaders need new, simple tools and trusted experts with a fresh outlook.

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