Citi Report: Family Offices Double Interest in Crypto to 17%, Asia Pacific Leads Adoption

Citi Report: Family Offices Double Interest in Crypto to 17%, Asia Pacific Leads Adoption

A recent survey conducted by Citi reveals that family offices’ interest in cryptocurrency has nearly doubled over the past year, rising to 17% in 2024, up from just 8% in 2023, according to CryptoSlate. The survey highlights that 24% of family offices favor direct investment in crypto assets, while exchange-traded funds (ETFs) remain a popular choice for gaining exposure to digital assets.

The Asia Pacific region leads in crypto adoption, with 37% of family offices either already invested in or expressing interest in crypto. In contrast, 83% of family offices in Latin America are not prioritizing crypto investments.

Despite the growing interest, the majority of family offices (73%) still do not focus on cryptocurrencies, with 11% planning to reduce their exposure.

Family Offices Show Rising Interest in Crypto

Citi’s 2024 survey illustrates a significant uptick in family office engagement with the crypto market, as 17% of respondents now express interest in digital assets, compared to 8% last year. This sharp increase reflects the growing appeal of cryptocurrencies among wealth management firms as part of a broader diversification strategy.

While direct investments in cryptocurrencies are favored by 24% of family offices, others are exploring options like crypto ETFs, which offer a more secure and regulated means of gaining exposure to digital assets without direct ownership.

Asia Pacific Leading the Way in Crypto Adoption

The Asia Pacific region stands out for its high level of interest in crypto investments, with 37% of family offices in the region either invested in or actively considering cryptocurrencies. This trend highlights the increasing importance of blockchain technology and digital assets in one of the world’s fastest-growing financial markets.

By contrast, Latin American family offices remain more hesitant, with 83% reporting that they are not prioritizing crypto investments. This discrepancy may be attributed to varying levels of regulatory clarity and financial infrastructure in different regions.

Majority of Family Offices Still Cautious About Crypto

Despite the growing interest from some family offices, the majority (73%) are still not focusing on cryptocurrencies as part of their investment strategy. Concerns over regulation, volatility, and security continue to pose challenges for wealth managers considering entry into the digital asset market.

Moreover, 11% of family offices surveyed indicated plans to reduce their exposure to cryptocurrencies, suggesting that some remain cautious about the long-term prospects of digital assets.

Conclusion: Crypto Gains Ground Among Family Offices, But Caution Remains

While Citi’s 2024 survey highlights a growing interest in cryptocurrencies among family offices, with 17% now engaged in the market, the majority still remain on the sidelines. Asia Pacific is leading the charge with significant crypto adoption, while Latin America lags behind. Despite the enthusiasm from some corners, 73% of family offices are still avoiding crypto, and 11% plan to reduce their involvement, reflecting ongoing concerns about the risks associated with digital assets.

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To learn more about the latest trends in institutional crypto adoption, explore our article on the latest news, where we dive into key insights from top financial experts and market analysts.