According to a Feb. 19 article from Nikkei Asia, Zann Kwan, the managing partner and chief investment officer at Revo Digital Family Office, has highlighted a growing trend among family offices in crypto.
The changing strategy aims to diversify portfolios and potentially improve returns, covering both direct and indirect investments in cryptocurrencies, crypto funds, structured products, and direct private equity investments.
The article added that despite digital assets constituting less than 0.5% of the total assets under management in Asia-Pacific family offices, there is a noticeable trend. It cited another report by Campden Wealth and Raffles Family Office, which revealed a growing interest in cryptocurrencies. About 9% of family offices without current crypto investments are planning to venture into this asset class.
The interest towards digital assets has been reinforced by significant price increases in cryptocurrencies such as bitcoin and ether in 2023.
During that time, bitcoin’s value has surged over 160%, reaching a market cap of over $1 trillion for the first time since December 2021. Additionally, the approval of the first U.S.-listed spot bitcoin exchange-traded funds (ETFs) in January was a major milestone, expanding investment avenues for both institutional and retail investors.
You might also like:
Klaytn, Finschia merge for web3 expansion in Asia
Furthermore, Hong Kong has been proactive in regulating digital assets, readying itself for applications for virtual asset (VA) spot ETFs, potentially making it the first Asian market to introduce such products. Despite these positive developments, macroeconomic challenges and geopolitical tensions have led to a cautious investment stance among Asian family offices.
The report also cited Brian Chan from Venture Smart Financial Holdings (VSFG), who reported an interest in liquid investments, particularly crypto hedge funds, as family offices seek flexibility in the current economic climate. This comes as the crypto hedge fund sector has shown signs of bouncing back from the difficulties it faced in 2022. There was a significant increase in the industry’s assets under management towards the end of 2023, highlighting a renewed interest in investments in digital assets.
Conversely, crypto venture capital activity saw a downturn in 2023, with investments falling to a third of the previous year’s levels. This shift has led to a dominance of passive investment products in the crypto fund market, indicating a strategic pivot towards more stable, lower-risk investment options.
Meanwhile, blockchain development in Asia continues to grow, with recent approvals for the merger of Layer-1 blockchains Klaytn and Finschia. This merger aims to establish a comprehensive web3 ecosystem in the region, involving over 45 companies, 420 decentralized applications (dApps) and services, and over 250 million wallet users.
Press Release from Cayman Finance, Monday 22 January, 2024. Cayman Finance is applauding the European Union’s recognition of the effectiveness of the Cayman Islands’ AML/CFT regimes and decision
The number of millionaires in the UK is set to fall by 17% over the next years, according to a report that shows that people are getting richer across the globe. The UK had over three million adults
The European Union is moving forward on various fronts to maintain support for Ukraine, but the bloc’s attempts have fallen short in the face of the increasingly challenging situation on the battlefield
Greece has claimed the top spot in the Global Residence Program Index for the first time, with its golden visa program scoring 73 Malta has once again secured the top position in the Henley and Partners