2024 Global Family Office Survey: Growing Optimism in Cryptocurrency Investments
According to a recent report by Citibank, titled '2024 Global Family Office Survey', there is a noticeable increase in the number of family offices showing optimism towards cryptocurrency investments. Remarkably, the percentage of family offices optimistic about cryptocurrencies has doubled from 8% last year to 17% this year. The preference for direct investments remains stronger than other investment methods.
Rising Interest in Digital Assets
The report emphasizes that the interest in digital assets is expanding among family offices, which have traditionally had a low exposure to this asset class. Regardless of whether a family office manages assets exceeding $500 million or below this threshold, their interest levels in digital assets are comparably high. The study found that direct cryptocurrency investments and investments in cryptocurrency-related funds are the top priorities for family offices.
Differences Between Large and Small Family Offices
Interestingly, the survey also revealed differences in investment preferences based on the size of the family office. Larger family offices show a significantly greater interest in tokenized real-world assets (RWA) compared to their smaller counterparts. In fact, 11% of large family offices reported having exposure to cryptocurrencies, whereas only 3% of smaller family offices indicated such exposure.
Conversely, smaller family offices have shown a higher demand for derivatives, with 8% holding exposure to these products compared to just 3% of larger family offices.
Regional Insights: Asia-Pacific vs Latin America
The report further identifies regional differences in the adoption of digital assets. The Asia-Pacific region leads significantly, with 37% of family offices either investing in or showing interest in investing in digital assets. Notably, one in every twenty family offices in this region reports that digital assets constitute more than 10% of their investable assets. In stark contrast, family offices in Latin America exhibit the least interest in digital assets, with a staggering 83% indicating that they do not prioritize digital asset allocation.
Conclusion
The findings from the '2024 Global Family Office Survey' by Citibank illustrate a shifting landscape regarding investments in cryptocurrency among family offices. While there is growing optimism and investment, particularly among larger family offices and those in the Asia-Pacific region, significant regional disparities remain. These insights are crucial for understanding the future trajectory of cryptocurrency investments within family offices worldwide.
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