Tag: Family Offices

92% High-Net-Worth Individuals in SG & HK Are Interested in Digital Assets: KPMG

by Blockchain News

To learn crypto perspectives from family offices (FOs) and high-net-worth individuals (HNWIs) in Singapore and Hong Kong, KPMG China and Aspen Digital conducted a study dubbed “Investing in Digital Assets” and discovered that growing interest among this group.

Per the report:

“Despite the volatility in the digital asset market in the past two years, FOs and HNWIs are keen to invest in the sector. The survey found that 92 percent of respondents were interested in digital assets, with 58 percent of FOs and HNWIs already investing and 34 percent planning to do so.”

The growing crypto interest among FOs and HNWIs in Singapore and Hong Kong was being driven by portfolio diversification and high return prospects. 

Confidence in digital assets was also being spurred by heightened participation by mainstream institutional investors. 

“Family offices and high-net-worth individuals in Hong Kong and Singapore have embraced this new asset class, with more than 90 percent of our survey respondents already investing in the space or planning to do so,” according to the study.

Bitcoin (BTC) and Ethereum (ETH) dominated the group’s investment portfolio. Furthermore, growing interest in decentralized finance (DeFi) and non-fungible tokens (NFTs) was also noted. 

Direct equity investment emerged as the primary source of funding for crypto service providers. Matthew Lam, Aspen Digital’s head of research, pointed out:

“We have observed that family offices/HNWIs prefer direct equity investments, while crypto-focused venture capital firms favour equity plus token warrant approach to invest in digital asset service providers.”

Nevertheless, respondents cited inaccurate valuation and the changing global regulatory environment as the biggest hurdles to crypto investment. 

For instance, all virtual asset service providers (VASPs) in Hong Kong will be required to apply for an operational license by March 2024. Moreover, Singapore is also eyeing to broaden its crypto regulation scope. 

Meanwhile, Hong Kong recently showed its intention to legalize crypto trading after launching several legal initiatives related to emerging technologies in the cryptocurrency industry, Blockchain.News reported. 

Image source: Shutterstock

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60% of uber-rich family offices considering crypto or own it: Goldman Sachs

by Cointelegraph

A survey conducted by major investment bank Goldman Sachs has found that close to half of its family office clients want to add cryptocurrency to their portfolios, signaling the ultra-wealthy are becoming increasingly bullish on digital assets.

The survey, reported by Bloomberg, queried more than 150 family offices worldwide and found that 15% are already exposed to crypto assets.

A further 45% of offices expressed interest in investing in the asset class as a hedge against “higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.”

However other respondents cited concerns regarding the volatility and long-term uncertainty surrounding the price of cryptocurrencies as reasoning for their aversion to the asset class.

Approximately 67% of the firms surveyed manage more than $1 billion worth of assets, with 22% of respondents boasting assets under management exceeding $5 billion.

Bloomberg describes the business of family offices as managing “the wealth and personal affairs of rich people,” including the likes of Microsoft co-founder Bill Gates, former Google CEO Eric Schmidt, and Chanel owners Alain and Gerard Wertheimer.

Related: Billionaire SBF says FTX may one day buy Goldman Sachs and CME

Professional services firm Ernst & Young estimates there are more than 10,000 family offices that each manages the financial affairs of only a single family, half of which were launched during the 21st century. The family office sector is estimated to manage more than $6 trillion globally, overshadowing the hedge fund industry.

Goldman Sachs’ Meena Flynn asserts that most of the firm’s family office clients have expressed an interest in the “digital asset ecosystem,” adding that many customers believe blockchain technology “is going to be as impactful as the internet has been from an efficiency and productivity perspective.”