Global family offices, managing roughly $1.6 billion in assets, largely shun cryptocurrencies and other traditional hedges amid geopolitical uncertainty. An industry survey of 333 single-family offices found that 89% hold no exposure to crypto or digital assets, and 72% do not invest in gold. While geopolitical risk remains a top concern, these offices considered cryptocurrency’s volatility and its weak correlation with other assets to hedge risk questionable. Crypto markets have drawn scrutiny as investors steer clear of digital assets, even as Bitcoin has experienced sharp swings.
Bitcoin fell about 46% from its October high of approximately $126,000, and crypto-focused equities have likewise exhibited volatility, with the Strategy fund stock showing notable moves. Bitcoin recently climbed from around $60,000 to $68,000, helping related equities rebound, while some analysts suggest that Bitcoin could retest all-time highs in the coming quarter.
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