Like many family offices, watching the crypto market fluctuate has been causing a lot of concern. While we don’t pick the investment strategies that families make, we are required to ensure that investment strategies are executed.
With crypto going from one end of the spectrum to the other, managing the investment and cashflow associated with the market volatility can be challenging.
Fortunately, many families are less buoyant when it comes to newer currencies and typically don’t put all of their investments in one area. This creates a safety net for when markets crash and ensures that wealth is managed accordingly.
In a recent Citi survey, it was found that most family offices invested in crypto infrastructure rather than the cryptocurrencies themselves.
There are strategies that many families take into consideration particularly when they see a market like cryptocurrency rise exponentially with volatile market reactions based on influencers rather than actuals.
The overall conservative spread of investments for many family businesses ensures that the chaos around cryptocurrency is short-lived and the great strategy remains that top priority and focus.
What is cryptocurrency?
A cryptocurrency is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it according to Wikipedia.
Are people still investing in cryptocurrency?
The answer is yes but since June 2022 the market has been significantly impacted.
Who is investing?
There are 19 billionaires that made their fortunes from cryptocurrency. The biggest publicly traded companies to invest in blockchain and cryptocurrency companies between September 2021 and June 2022 include electronics giant Samsung, technology behemoth Alphabet, and investment management firm BlackRock, according to a study by crypto intelligence platform Blockdata.
