Global Family Offices Sideline Cryptocurrency Amid Geopolitical Concerns

Global Family Offices Sideline Cryptocurrency Amid Geopolitical Concerns

The world of family offices is experiencing a notable trend, as a substantial majority of these entities are steering clear of cryptocurrency investments, according to findings from JPMorgan Private Bank’s 2026 Global Family Office Report. This report highlights a prevailing cautiousness among wealthy families towards digital assets despite the ongoing buzz surrounding them.

Minimal Exposure to Cryptocurrencies

Remarkably, 89% of global family offices report that they do not hold any cryptocurrencies in their investment portfolios. This statistic underscores a broader trend where high-net-worth individuals seem reluctant to embrace what many consider a volatile and uncertain market. The report suggests this caution may stem from recent upheaval in the cryptocurrency markets, which has further solidified family offices’ preference for more traditional forms of investment.

Investment Preferences and Future Trends

Despite the significant hype around digital currencies, only a minority (17%) of wealthy families indicated an interest in prioritizing crypto-related investments in the future. In stark contrast, artificial intelligence has captured far more attention; 65% of respondents expressed a desire to invest in AI technologies going forward. This disparity reflects shifting priorities among family offices, who appear to favor innovation with perceived stability over the unpredictability of digital assets.

Broader Investment Strategies

The study, which surveyed 333 family offices across 30 countries, revealed that these entities typically allocate around 75% of their assets to a blend of publicly traded stocks and alternative investments. Among public holdings, U.S. large-cap stocks are particularly favored, while private investments are largely directed towards drawdown funds. This diversified approach reflects a broader strategy aimed at minimizing risk while still seeking satisfactory returns.

The Role of Geopolitical Risks

One of the report’s significant findings is that family offices are not only avoiding cryptocurrencies but are also shying away from other alternative hedges, such as gold, with 72% having no exposure to this traditional safe haven. This avoidance appears to be closely tied to the pervasive sense of geopolitical risks highlighted within the wealth management report, indicating a cautious approach in uncertain times.

Insights from JPMorgan’s Collaboration

Natacha Minnit, Global Co-Head of the Family Office Practice at JPMorgan Private Bank, emphasizes that the report goes beyond mere data collection; it represents collaborative insights drawn from some of the most sophisticated family offices worldwide. The average net worth of the participating entities was approximately $1.6 billion, showcasing the wealth concentration within this investment segment.

Conclusion: A Reserved Yet Evolving Landscape

In sum, while the allure of cryptocurrencies continues to capture headlines, many family offices remain hesitant to chase digital assets amidst increasing volatility. Their focus appears to be shifting toward more stable investment opportunities, particularly in technology, revealing an evolving landscape that underscores the complexities of wealth management in today’s economic climate.

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