There is an increased appetite for cryptocurrency and digital assets from family offices but still a … [+]
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To say that a lot is happening in the crypto space is an understatement. In the past few years, crypto markets have weathered some of the most challenging economic conditions in a generation with a global pandemic, record inflation and, most recently, war in Ukraine. Interest among mainstream investors continues to grow, and experts predict that the values of Bitcoin and DeFi will rise rapidly in 2022. With the Crypto Assets Conference (Frankfurt) wrapping up last week and the Paris Blockchain Week Summit ahead this week, it seems an apt time to delve into crypto under the family office lens.
Despite its growing popularity, crypto is still in its infancy, as is family office investing in this space. According to a recent Simple poll of family offices and their advisers, it remains difficult to navigate, with 54% of respondents admitting a lack of understanding of crypto.
Being aware of this fact is vital not only for family offices that may need to recruit specialized assistance in this field but also for vendors dealing with family offices in this space. While family offices have investing power akin to institutions, they often lack the sophistication of these. Varying degrees of professionalization and sophistication are evident. This spans internal teams, processes, structure and strategy. Different decision-making processes and motivations for investing are also present and worthy of consideration.
Given the distinct needs and considerations family offices have when evaluating exposure to cryptocurrency and the challenges this presents for crypto vendors in this space, Simple’s 2022 Cryptocurrency Review has been designed with this in mind. It examines the technology underlying cryptocurrency, the ecosystem of service providers with particular attention to crypto…
