In one sentence: One of the most important investor groups (perhaps even the most important from our point of view) is very interested in crypto investments. This group could bring as much as tens of additional billions of dollars to the markets.

Among the largest investors, we have three major groups: banks, hedge funds and family offices.

According to a recent research, the interest in crypto from family offices has increased a lot. Why is this important? There are three good reasons for this.

Family offices are the least known group of investors. They are private investment funds of the wealthiest families. They have enormous capital at their disposal. In late 2021, hedge funds had about $4.5 trillion under management. And family offices – about 6 trillion (or 30% more).

Secondly, the investment solutions and products that are created for them are later available also for smaller investors.

Third, generally speaking, the best of the banks and mutual funds work there – people who have earned their reputation as outstanding specialists.

Of course, in the case of the biggest ones, we won’t know exactly what positions they hold. So how can we gauge their commitment and future appetite for crypto? There are two such ways.

The first is to read the reports and analyses that are directed to family offices – the largest banks.

By the way: the largest banks have started offering crypto products for family offices.

Secondly, research the family offices themselves to what extent they are interested or involved in crypto. They certainly won’t tell us how much, but keep in mind that this industry can bring another 1-2% of its resources to the crypto market, which will equate to about 100-120 billion.

Reports aimed at family offices (at least the ones I know of) talk about valuing BTC at $100k or more in a few years. There are some that talk about a value twice that.

Another case: last year less than 50% of FOs expressed interest in crypto. This year, according to a survey from January – already 77%. This is a huge increase. And the survey took place in January – when we were already in the middle of big drops.

Let me repeat, because this is important: BTC was falling strongly, while interest in Family Offices was growing strongly.

The research I mentioned:

(from Barrons: „Future Returns: Cryptocurrency’s Future in Family Office Portfolios”)

“In February, BNY Mellon, in conjunction with the Harris Poll, released its first-ever global family office survey findings. Some of the most interesting data suggest a previously unheard of level of interest in cryptocurrency investments.

Of 200 key global family office personnel surveyed, 77% said their firms were exploring or investing in cryptocurrencies, with one out of five describing themselves as active investors.”