BNY Mellon Says One-Third of U.S. Family Offices Now Active in Crypto Market

More than 30% of family offices in the United States are actively investing in cryptocurrencies, and many are thinking about growing their holdings, according to a new BNY Mellon survey. This spike in demand demonstrates how popular digital assets are becoming among affluent households.

The first spot Bitcoin exchange-traded funds (ETFs) were approved by the U.S. Securities and Exchange Commission (SEC) in January, which was a major step toward bringing cryptocurrency into the mainstream of investing. This study was released at the same time. Based on research from BNY Mellon, 33 percent of family office professionals have already made cryptocurrency investments and may increase their holdings in the future.

Diverse Engagement Levels

While a third of family offices are actively investing in cryptocurrencies, 38% reported having no current exposure or interest in digital assets. The remaining 30% showed varied levels of involvement, with some having limited exposure or exploring the asset class without active investments.

“True to their entrepreneurial nature, family offices are showing themselves ready and willing to move into new and emerging opportunities. […] Cryptocurrencies account for 5% of portfolios, an allocation that would have been unthinkable a decade ago,” noted BNY Mellon.

The motivations behind this interest in cryptocurrencies are diverse. Over half of the respondents cited “keeping up with new investment trends and opportunities” as a primary driver. Additionally, interest from current leadership or the next generation within the family office influenced more than 30% of the respondents.

Despite the growing interest, the report identified regulatory uncertainties as a significant barrier to further investment. The “not well-defined” regulatory environment remains a concern for many family offices. Nevertheless, 55% expressed favor for public market ETFs that own cryptocurrencies, and 54% preferred trading directly on exchanges.