Wednesday 17th November 2021
“Family offices” provide information
Many super-rich are already investing in crypto
Not only institutions but also the super-rich hesitated for a long time when it came to crypto investments. A study of managers of large fortunes now shows: over a quarter of the super-rich families looked after around the world have already got into crypto currencies.
More and more large investors are getting into cryptocurrencies. 28 percent of the super-rich families around the world are already invested in Bitcoin, Ethereum and Co., according to a survey by the consulting organization Campden Wealth of 385 family offices, i.e. managers of large fortunes. According to this, many expected that cyber currencies, once struggling with a dubious reputation, would blossom into established investment vehicles. 28 percent of those surveyed planned to increase their positions in the coming year.
Family offices manage the private assets of their owning families, which the survey suggests averages $ 1.1 billion. After Great Britain, Switzerland is one of the centers for family offices in Europe.
Of course, the survey should not be viewed as representative. Campden Wealth is a consulting firm that sells its knowledge to family offices, among others. Nevertheless, the company probably has a good insight into the sometimes closed world of super-rich families.
The renewed success of cryptocurrencies in the past few months is also proven by numbers. Bitcoin and Ethereum have rushed from record to record in the past few weeks. According to an industry website, the value of globally traded crypto currencies exceeded the three trillion dollar mark (2.6 trillion euros) for the first time at the beginning of November, but had dropped quite a bit in the past few days.
Traditional money managers are jumping up
The extreme volatility had also deterred institutions and funds from investing in crypto assets for a long time. Meanwhile, large investors and even pension funds are increasingly taking hold. Many traditional asset managers such as the Swiss private banks are in the process of developing appropriate offers for their clients. The drivers of demand are, among other things, the simmering fear of inflation and the fear of missing out on something.
According to Campden Wealth, 42 percent of family offices consider cryptocurrencies to be a worthwhile investment. So far, their share in the total wealth of families is only one percent – the same as precious metals. The largest share is accounted for by stocks followed by real estate. Family offices are considered to be rather conservative. Many of them have the task of safeguarding the assets entrusted to them.