Family Offices Expand Crypto Exposure, but Volatility Clouds 2026 Outlook
Global family offices increased their exposure to cryptocurrencies in 2025, with a growing number entering the market for the first time.
Key Takeaways:
Family offices expanded crypto exposure in 2025, with many making first-time allocations. Bitcoin and Ether remain the main entry points as improved infrastructure offsets limited in-house expertise. Market volatility and weak prices are tempering expectations for broader adoption in 2026.However, sharp price swings and weak recent performance are raising doubts about how far that momentum can carry into 2026, according to a report by Financial News.
“Family offices moved from ‘crypto experimenters’ to structured allocators [in 2025], allocating modest but growing percentages of wealth to digital assets,” Muhammed Yesilhark, chief investment officer at NOIA Capital, told the outlet.
Family Offices Favor Bitcoin and Ether as Infrastructure Improves
Yesilhark added that most allocations focused on areas where infrastructure, custody solutions and risk controls had improved.
Despite broader interest, Bitcoin and Ether remained the main entry points, reflecting limited in-house crypto expertise at many family offices.
Survey data points to a rapid rise in engagement. A study by BNY Mellon published in October found that 74% of ultra-high-net-worth family offices are now investing in or actively exploring cryptocurrencies, up 21 percentage points from the previous year.
Market participants say that increase was driven not just by price cycles, but by a more developed ecosystem around custody, compliance and regulated investment vehicles.
Chris Rhine, head of liquid active strategies at Galaxy Digital, said his firm saw a noticeable wave of first-time allocations this year.
Many family offices, he noted, conducted detailed due diligence before committing capital, signaling a longer-term approach rather than opportunistic trading.
That cautious entry did not stop some high-profile moves. Hong Kong-based family office VMS made its first crypto investment by backing digital asset hedge fund Re7 with $10 million.
Separately, the family office of Arthur Hayes is planning to raise $250 million for its first crypto-focused private equity fund, underscoring growing institutional confidence in the sector’s infrastructure layer.
IPO Revival Could Pull Family Offices Deeper Into Crypto in 2026
Looking ahead, Pete Najarian, founder and managing partner of Raptor Digital, expects crypto to take up a larger share of family office portfolios in 2026, especially if public markets reopen for digital asset firms.
A more active IPO pipeline, he said, could draw interest from families seeking exposure through exchange-traded funds and other regulated vehicles.
Still, recent market conditions have tempered enthusiasm. The crypto market has shed more than $1 trillion in capitalization since October, with Bitcoin and Ether each down over 30%.
One UAE-based family office representative said the volatility has pushed some investors to favor steadier assets such as real estate. “We are still far from broader adoption,” the person said.
Yesilhark argued that success in 2026 will hinge on discipline. Family offices that focus on infrastructure, selective bets and strong underwriting, rather than short-term speculation, are more likely to stay committed through the next cycle.
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