Crypto assets have piqued the interest of family offices across the globe, but the lack of regulatory clarity surrounding these investments continues to be a concern, as shown by a recent survey conducted by Ocorian, a global provider of services to high-net-worth individuals. About 90% of the 134 family office professionals surveyed, representing around $62.4 billion in assets, reported a client-driven demand for including crypto in their investment strategies.
The Ocorian survey presents a different picture compared to the Goldman Sachs survey released earlier this month, suggesting that interest in crypto among family offices has dropped. The percentage of respondents with no interest in the crypto sector increased from 39% to 62% over the past two years, according to the Goldman Sachs report. Potential reasons behind these contradicting findings could be due to differences in the questions posed by each survey.
Amy Collins, Ocorian’s family office head, acknowledged the undeniable growth of interest in crypto assets among high-net-worth individuals and family offices. However, she also highlighted the challenge faced by 80% of the surveyed family offices and high-net-worth individuals – the lack of sufficient regulatory and reporting support. This challenge encompasses the different tax regimes for digital assets across various jurisdictions and emphasizes the need for the right expertise in the high-risk crypto asset class.
Katherine Ng, managing director of TZ APAC, a Singapore-based group working towards the adoption of the Tezos blockchain, highlighted the changing landscape in the fund management solutions sector. Ng noted that the primary driving force in this trend is the wealth of Generation Z, which is distributed across stablecoins, cryptocurrencies, and NFTs rather than being confined to traditional banks.
With the surge in interest in crypto assets, it’s crucial to address the lack of regulatory and reporting support to help family offices and high-net-worth individuals navigate the challenges associated with this emerging asset class. As regulations and industry practices evolve, it remains to be seen how the crypto landscape will look to these investment entities in the near future.