Despite ongoing geopolitical uncertainty, family offices are still exercising caution towards both crypto and gold, as per a recent survey conducted by J.P. Morgan Private Bank.
The survey findings indicate that family office portfolios continue to have a significant focus on traditional assets, resulting in minimal exposure to cryptocurrencies.
“On average, about 75% of assets are invested in public equities and alternative investments, with a strong emphasis on U.S. large-cap equities in public holdings and drawdown funds in private investments. It is also noteworthy that many family offices are refraining from investing in certain areas (Exhibit 4). Despite the buzz surrounding crypto and digital assets, a large majority of family offices (89%) are choosing to stay on the sidelines.”
The bank highlighted that this cautious approach reflects an ongoing debate within the industry regarding the role of cryptocurrencies and digital assets in investment portfolios.
“This could reflect a debate that we are also having within J.P. Morgan: What role should cryptocurrency and other digital assets play in a portfolio, and, perhaps more importantly, how much exposure should a portfolio have considering their high volatility and inconsistent correlation with traditional assets?”
The survey results are based on responses from 333 single family offices across 30 countries, with 197 participants from the United States and 136 from international locations. The responses were anonymized and analyzed by an independent research firm.
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