Nikolas Sargeant
Global family offices increased their cryptocurrency exposure during 2025, with a growing number making first-time allocations to digital assets, though sharp price volatility and weak recent performance are raising questions about how far that momentum can extend into 2026.
"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 Financial News. Yesilhark added that most allocations focused on areas where infrastructure, custody solutions, and risk controls had demonstrated meaningful improvement.
Despite broader interest across the asset class, Bitcoin and Ether remained the primary entry points for family office capital, reflecting limited in-house cryptocurrency expertise at many wealth management operations. The concentration in established assets suggests family offices are prioritizing liquid, well-understood digital currencies over experimental tokens or decentralized finance protocols.
Survey data indicates rapid acceleration 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, representing a 21 percentage point increase from the previous year. Market participants attribute the growth not only to price appreciation cycles but to a more developed ecosystem around custody, compliance infrastructure, and regulated investment vehicles.
Chris Rhine, head of liquid active strategies at Galaxy Digital, said his firm observed a noticeable wave of first-time allocations during 2025. Many family offices conducted extensive due diligence before committing capital, signaling longer-term strategic approaches rather than opportunistic trading behaviors, Rhine noted.
The cautious entry pattern did not prevent high-profile allocations. Hong Kong-based family office VMS made its inaugural cryptocurrency investment by backing digital asset hedge fund Re7 with $10 million. Separately, the family office of BitMEX co-founder 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 development.
Looking toward 2026, Pete Najarian, founder and managing partner of Raptor Digital, expects cryptocurrency to claim larger shares of family office portfolios, particularly if public markets reopen for digital asset firms. A more active initial public offering pipeline could draw interest from families seeking exposure through exchange-traded funds and other regulated vehicles that provide familiar legal and operational frameworks.
However, recent market conditions have tempered enthusiasm among potential allocators. The cryptocurrency market has shed more than $1 trillion in capitalization since October, with Bitcoin and Ether each declining over 30% from recent peaks. The drawdown has prompted some family offices to reconsider allocation timing or shift focus toward less volatile asset classes.
One UAE-based family office representative stated the volatility has pushed certain investors to favor steadier assets including real estate. "We are still far from broader adoption," the person said, suggesting cryptocurrency remains a specialized allocation rather than a mainstream portfolio component for ultra-high-net-worth families.
Yesilhark argued that success in 2026 will depend on disciplined approaches. Family offices that prioritize infrastructure investments, selective positioning, and rigorous underwriting processes rather than short-term speculation are more likely to maintain commitments through the next market cycle, he suggested.
The improved custody and compliance infrastructure that attracted family offices in 2025 represents a structural shift from earlier market phases when institutional-grade solutions were limited. Major financial institutions including BNY Mellon, Fidelity, and State Street have launched cryptocurrency custody services, while regulatory clarity has improved in key jurisdictions, reducing operational and legal risks for institutional allocators.
