Family Offices Reluctant to Invest in Cryptocurrencies and Gold
A recent survey conducted by J.P. Morgan Private Bank suggests that family offices are showing significant reluctance to invest in cryptocurrencies and gold, even amid ongoing geopolitical tensions. The research indicated that a substantial portion of their investments—approximately 75%—is funneled into more conventional asset classes, notably public equities and alternative investments.
Within this investment landscape, U.S. large-cap stocks hold a prominent position, while drawdown funds are prevalent among private investments.
Survey Findings on Cryptocurrency Investment
Interestingly, the survey highlighted that a staggering 89% of family offices opt to steer clear of cryptocurrency markets. Despite the buzz surrounding digital assets, this majority appears to be taking a conservative approach. J.P. Morgan noted that this trend reflects a broader discussion within the financial sector, including debates about the role of cryptocurrencies in an investment portfolio, particularly given their known volatility and unpredictable relationship with other asset types.
Survey Methodology
This analysis stems from an online survey involving 333 single family offices across 30 countries, with a notable split of 197 respondents from the United States and 136 from international locations. The anonymity of the responses was maintained by an independent research firm that processed the data for J.P. Morgan.
Overall, the survey reveals a cautious mindset among family offices towards diversifying into riskier asset classes like crypto and gold during this period of global uncertainty.
