Making the investment case for bitcoin infrastructure
For family offices unsure of where or how to get started with crypto, investing in the infrastructure that enables it could present itself as an interesting on-ramp.

What you need to know

  • Crypto is a vast and rapidly growing category capable of delivering lucrative returns to savvy investors. But it’s also a world that is crowded, complex and confusing, making it hard for family offices to know where to make their investments.
  • Bitcoin stands out within the category – both technologically and in terms of adoption. It presents the clearest opportunity yet to rearchitect the world’s monetary systems. But making this happen requires significant investment in bitcoin infrastructure
  • Many high-potential bitcoin infrastructure startup valuations are under-priced, presenting an attractive opportunity for family offices looking to make substantive first steps into the crypto world.
Venture Capital Published on Simple May 5, 2022

Family offices have a rich tradition spanning many decades of investing in emerging categories and companies. And although it’s not always widely acknowledged, they’re well-accustomed to evaluating – and tolerating – risk as part of their long-term decision-making. So it’s no surprise to see that more than two out of three family offices are considering diversifying into cryptocurrencies as part of their overall investment strategy. Crypto is a vast and rapidly growing category capable of delivering lucrative returns to savvy investors. But it’s also a world that is crowded, complex and, at times, deeply confusing. There are 1,000s of competing cryptocurrencies and many different avenues for gaining entry into the market, from public market ETFs to venture investment.

As Simple’s 2022 Cryptocurrency Review concludes, “Probably the single biggest difficulty of investigating cryptocurrency for family offices is the sheer quantity of noise and hype… Filtering through the ocean of information requires a clear understanding of the underlying technology and the value propositions of service providers.”

Of all the breakthrough technologies vying for market supremacy, few rival the blockchain for their perceived complexity. This could explain why just 15% of family offices currently have any crypto exposure.

About the Authors

Kjartan Rist

Kjartan Rist

Venture capital investing

Kjartan is a Founding Partner of Concentric, the London & Copenhagen-based venture capital firm. He helps family offices gain a better understanding of VC investments and how to allocate towards this.

Connect with Kjartan Rist

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