Digital assets: A brief update for family offices

Bitcoin is a polarising asset class for traditional financial institutions and it turns out the same is true for family offices too. Given the recent spot BTC ETFs approval, this insight delves into what family offices need to know about the evolving world of digital assets, how the spot Bitcoin ETFs came about and valuable resources to explore.

What you need to know

  • Family offices are increasingly showing interest in digital assets, with 32% currently investing in them, compared to 16% in 2021. However, 62% remain uninterested.
  • The approval of spot Bitcoin ETFs, driven by institutions like BlackRock and Fidelity, marked a significant development, offering easier access to Bitcoin for investors. 
  • Educational resources and service providers are available to help family offices navigate the digital asset landscape.
Digital Assets Updated on February 1, 2024

The controversies surrounding digital currencies continue to widen the divide between those who believe in the power of blockchain technology and those who don’t. According to a recent family office report from Goldman Sachs, 32% of family offices currently invest in digital assets across the board. Those invested in digital currencies rose from 16% in 2021 to 26%. However, the proportion not invested and not interested in the future has increased from 39% to 62%.

The evolution of digital currencies

The beginnings of Bitcoin, the first digital currency, are shrouded with mystery. Following the ‘08 financial crisis, an anonymous creator called Satoshi Nakamoto published the Bitcoin Whitepaper in 2009, recording a breakthrough in cryptography. In it, he proposed a peer-to-peer electronic cash system that relied on computational power, or proof of work, to verify transactions. Simply put, the online network system, or the blockchain, could issue currency and function independently of third parties such as banks.


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