Family Offices Expand Crypto Exposure, but Volatility Clouds 2026 Outlook

Core Insights - Global family offices have increased their exposure to cryptocurrencies in 2025, with many entering the market for the first time [1][9] - Despite the growing interest, market volatility and weak recent performance are raising doubts about the sustainability of this momentum into 2026 [3][9] Family Office Engagement - A study by BNY Mellon indicates that 74% of ultra-high-net-worth family offices are now investing in or exploring cryptocurrencies, a rise of 21 percentage points from the previous year [5] - Family offices have transitioned from being 'crypto experimenters' to structured allocators, with a modest but growing percentage of wealth allocated to digital assets [3] Investment Preferences - Bitcoin and Ether remain the primary entry points for family offices, reflecting a lack of in-house crypto expertise despite improved infrastructure and risk controls [4][9] - The cautious approach of family offices includes detailed due diligence before capital commitment, indicating a long-term investment strategy rather than opportunistic trading [6] Notable Investments - Hong Kong-based family office VMS made its first crypto investment by backing digital asset hedge fund Re7 with $10 million [6] - The family office of Arthur Hayes is planning to raise $250 million for its first crypto-focused private equity fund, highlighting growing institutional confidence in the sector [7] Future Outlook - Expectations for 2026 suggest that crypto could take up a larger share of family office portfolios, particularly if public markets reopen for digital asset firms [8]