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Just How Real Is It for Old Money? By DailyCoin


Family offices and crypto: How real is it for old money?
  • Cryptography is becoming more popular among family offices.
  • Many wealthy families begin investing in crypto at 1% to 2%. However, this percentage often grows and becomes a greater portion of their overall portfolio.
  • Family investors can rely on mentorship to learn and get advice from other people who know the market well.
  • Experts agree that it is worth taking risks and making asymmetrical investments.

Everyday investors might think that family offices just serve the Baby Boomer generation who own a generous amount of “traditional” wealth and who would never be interested in the volatile and nascent cryptocurrency. However, the reality is quite different – family offices are becoming more involved in blockchain.

Angelo Robles hosts the Angelo Robles podcast. He is also the CEO of Family Office Association (a worldwide organization dedicated to wealth families). The family office’s founder is an investor who has been active in investing in over 30 other digital assets. He explained that billionaire families’ interest in crypto assets is increasing.

“Family office world tends to seem old and stagy, but cryptocurrency is gaining popularity and becoming widespread among the rich families,”
Robles.

From 2017 to 2021, changes

Family Office Association holds events that feature crypto assets each year since 2017. The interest was high in 2017 but it waned after the crypto market crashed and there were many other reasons. The super-rich remained steadfast. As Robles explained, they didn’t get afraid or nervous. If anything, they’re long-term investors that look at crypto as a buying opportunity. They didn’t look so smart for about two and a quarter years, but then COVID-19 came along and a month or two after that it seemed like and prices began to explode.

“Some people in my community feel it was the white paper by hedge fund legend Paul Tudor Jones that sparked interest specifically in Bitcoin in the summer of 2020. Then it became some level of institutional adoption,”
Robles spoke to DailyCoin in an exclusive interview.

Robles explained that many wealthy investors have not been only active in Bitcoin and Etherium but also this year and other platforms such as. So they are more fluid on cryptocurrencies than they’re given credit for, and what a lot of them are willing to talk about in public. They may say one thing in public, but their actions in real life might not be the same.

“If I had to give you percentages for surveys that I do, I’d say that in 2017, 45% of very wealthy investors had some allocation to crypto assets. The number has risen to 55% as of September 2021. Although most investors have only 2%, others have much more.

But here’s the key point: when I ask families that are not currently allocated to cryptocurrency whether they are interested and getting close to possibly pulling the trigger, about 80% said yes. They are doing more diligence and they’re trending towards some sort of allocation, and maybe it’s 25 basis points to Bitcoin, but it gets their feet wet, makes them feel engaged. So the trend is going nothing but up,”
Robles explained.

What do the wealthy invest?

“As new information comes in, I often need to adapt my decision-making very quickly,”
Robles shared.

“That does not mean I’m a highly tactical trader, I pretty much buy and hold. However, I sometimes take assets out of other resources. I need to be sure that my thesis and logic are strong. Sometimes, I move from crypto to other positions. And my experience is – the families who invest and are much much bigger than me – are extremely similar.”
Wealthy families receive information. However, they are responsible for their decisions. They manage crypto risk with tact because they want to be cautious. The fact that there might be a crypto winter means the market could go down significantly is something they are able to accept. All of us know that. However, until this happens we don’t really know who will be a long-term investment.

To The Flipside

  • Future growth in interest from family offices in cryptocurrency will be significant.
  • Because of the many asymmetric possibilities, now could be a great time to invest digital assets.

Why you should care

Billionaires don’t just care about Bitcoin or Etherium. They’ve researched other crypto assets, institutional custody, NFTs, and decentralized finance – the bigger picture of what crypto assets could be and the influence they’ll have on changing the world, the economy, and the investing landscape.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.