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Asian Family Offices Seek to Supercharge Crypto Investments

Shalini Nagarajan
Last updated: | 2 min read
Family offices
Source: DALL·E 3

Asian family offices are gearing up for higher investments in cryptocurrencies, as Bitcoin extends an uptrend streak.

DealStreetAsia reported on Monday that wealth managers found offices that are already invested in crypto intend to dive even deeper.

Revo Digital Family Office’s Zane Kwan told the outlet about growing curiosity among previously hesitant investors. These people are now exploring how crypto allocations could mitigate portfolio risk or boost returns.

Family office crypto exposures wouldn’t be limited to direct investments. They would extend to diverse channels like crypto funds, structured products, and even private equity ventures.

Seeking Alpha with Crypto Hedge Fund Exposure

With allocations ranging from 1% to 5%, Asian family offices are leading the charge in diversified crypto exposure, employing direct investments, options, structured products, and dedicated funds.

Favorable regulations in select Asian hubs like Singapore and Hong Kong are further fueling the interest and investment appetite for cryptocurrencies.

Brian Chan of Venture Smart highlighted crypto hedge funds as the most attractive strategy. This shows growing family office interest in active management within the crypto space.

Family Offices See Long-Term Potential

Asian elites jumped into direct token purchases during the previous crypto boom, lured by the potential for astronomical gains.

But having learned from the “get rich quick” mentality of the past, these offices are now trying smarter allocation strategies and more realistic expectations.

Chan highlighted a change in mindset. He said investors now acknowledge that long-term crypto investment necessitates closer attention to regulations and infrastructure. This would build a strong foundation for the entire ecosystem.

Bitcoin Halving Fuels Optimism for Price Surge

Further, wealth managers predict the upcoming Bitcoin halving could fuel a price surge. This event happens roughly every four years. And Bitcoin’s anticipated price increase is linked to the halving event, which essentially cuts the supply of new coins in half, potentially creating scarcity and attracting buyers.

In 2024, the reward will drop from 6.25 to 3.125 Bitcoins per block, potentially impacting supply. This, combined with the growing sophistication and interest from Asian family offices, could paint a vibrant picture for the next half of the year.

Family Offices Opts for Crypto Exposure

Last year, Goldman Sachs revealed that family offices globally, including those in Asia, increased their crypto allocations, defying the bearish market in 2023.

“Across products, 32% of family offices currently invest in digital assets. Within the digital-asset ecosystem, family offices have become more decisive about cryptocurrencies: the proportion that are invested has risen from 16% in 2021 to 26%,” the bank said.