Family offices increase their crypto asset allocations, with volatility becoming the biggest uncertainty for 2026

In 2025, global family offices significantly expanded their investment allocations in cryptocurrencies, with an increasing number of previously cautious family capital entering the digital asset market for the first time. Industry consensus suggests that this year marks a transition for family offices from “testers” to “structured allocators,” with crypto assets beginning to be integrated into long-term asset portfolios.

Several industry insiders point out that Bitcoin and Ethereum remain the primary entry choices for family offices. This is due to the ongoing improvement of custody, security, compliance, and trading infrastructure, which to some extent compensates for the lack of internal crypto expertise within family offices. Compared to high-risk altcoins, BTC and ETH better align with their risk control and long-term allocation strategies.

Data shows that family offices’ participation in cryptocurrencies is rapidly increasing. A study published by BNY Mellon in October 2025 indicates that 74% of ultra-high-net-worth family offices have invested in or are actively evaluating crypto assets, a 21 percentage point increase from the previous year. This growth is driven not only by price cycles but also by the maturity of regulated investment tools such as custodial services and ETFs.

Market institutions have also observed a clear wave of “first-time entry.” Some family offices conducted systematic due diligence before allocation, demonstrating a preference for long-term investments rather than short-term trading. Typical cases include Hong Kong-based family office VMS investing $10 million in digital asset hedge fund Re7, and Arthur Hayes’ family office planning to raise $250 million for a crypto private equity fund.

However, market volatility is casting a shadow over the outlook for 2026. Since October 2024, the total market cap of cryptocurrencies has evaporated by over $1 trillion, with Bitcoin and Ethereum both falling more than 30%. As a result, some family offices are shifting back to lower-volatility assets such as real estate, reducing their crypto allocation expectations in the short term.

Looking ahead, industry experts generally believe that the revival of IPOs for digital asset companies, the expansion of ETF products, and clearer regulations will be key factors driving family offices to further increase their crypto investments in 2026. But this depends on market volatility being controlled and investment logic returning to infrastructure and long-term value, rather than emotional speculation.