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Family offices turn to crypto as client demand grows

Family offices turn to crypto as client demand grows

23 May, 2023
Private Clients Family Office

New global research* from Ocorian, the specialist global provider of services to high net worth individuals and family offices, financial institutions, asset managers and corporates reveals an increasing number of family offices are moving to include crypto and digital assets into their investment strategies.

90% of family offices say clients are including crypto and digital assets in their investment strategies

Its international study with more than 130 family office professionals responsible for around $62.425 billion assets under management found nine in ten (90%) said they are seeing their clients looking to include crypto and digital assets within their investment strategies. 

There are a number of challenges for family offices looking to invest in crypto – as well as being a high-risk asset, they can be faced with regulatory and practical challenges as well as inconsistencies between global tax regimes – therefore it’s vitally important that they access the right expertise to support them.

80% of family offices are struggling to find support with regulation and reporting obligations

However, the research from Ocorian, which works with more than 60 family offices around the world, shows eight in ten (80%) family offices and high net worth individuals are struggling to outsource to third parties who are willing to support in the regulation and reporting obligations of digital assets.

Amy Collins, Head of Family Office at Ocorian, said: “Many family offices, particularly those run by younger, tech-savvy generations want to make a move into investing in crypto and digital assets. However, given the challenges and risks associated with this asset class, it’s concerning that so many are struggling to find the right support with the practical, regulatory and reporting requirements.”

“At Ocorian we work closely with clients to make sure we fully understand the particular asset class as well as the risk, in tandem with achieving our clients’ aims. We develop a bespoke corporate and compliance framework in each case in order to understand the pertinent risks and comply with regulations in the relevant jurisdictions.”

Ocorian’s award-winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.

*Ocorian commissioned independent research company PureProfile to interview 134 family office investment managers working for family offices which use third-party private client services providers to support in the preservation and protection of their clients’ wealth. The investment managers interviewed are responsible for assets under management of $62.45 billion and include 63 working for multi-family offices. The global study interviewed family offices in the US, UK, Canada, China, Germany, India, Norway, Saudi Arabia, Singapore, South Africa, Sweden Switzerland, UAE, Denmark, France and Japan.

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