Family Offices Increase Crypto Engagement, Yet Volatility Clouds 2026 Prospects

Family Offices Increase Crypto Engagement, Yet Volatility Clouds 2026 Prospects

In 2025, global family offices heightened their engagement with cryptocurrencies, with many newcomers entering the crypto landscape for the first time.

Key Takeaways:

An increasing number of family offices have expanded their crypto investments in 2025, with many making initial allocations.
Bitcoin and Ether continue to be the primary assets targeted, largely due to better infrastructure despite limited in-house expertise.
Current market volatility and declining prices are tempering expectations for broader crypto adoption in 2026.

Despite a growing interest in cryptocurrencies, sharp price fluctuations and recent weak performance are raising concerns about the sustainability of this momentum into 2026, as highlighted in a report by Financial News.

“Family offices transitioned from being ‘crypto experimenters’ to structured allocators in 2025, allocating modest yet increasing percentages of their wealth to digital assets,” noted Muhammed Yesilhark, chief investment officer at NOIA Capital, in an interview with the outlet.

Bitcoin and Ether Remain Key Choices Amid Improved Infrastructure

Yesilhark explained that most investments were directed toward areas where there have been improvements in the infrastructure, custody solutions, and risk management frameworks.

Although interest in cryptocurrencies has broadened, Bitcoin and Ether still serve as the primary entry points, indicating many family offices lack deep in-house crypto expertise.

A recent survey revealed a significant uptick in engagement with cryptocurrencies. According to research by BNY Mellon published in October, 74% of ultra-high-net-worth family offices are now investing in or actively considering cryptocurrencies, showing a 21 percentage point increase from the previous year.

Market experts suggest that this rise in engagement is not solely tied to price trends but is also influenced by a more developed ecosystem, including custody, compliance, and regulated investment options.

Chris Rhine, head of liquid active strategies at Galaxy Digital, mentioned that his firm witnessed a marked increase in first-time allocations this year.

Many family offices, he added, performed thorough due diligence before investing, indicating a preference for a long-term strategy rather than short-term trading opportunities.

However, this cautious approach did not prevent some notable investments. For instance, Hong Kong-based family office VMS made its debut crypto investment by supporting digital asset hedge fund Re7 with a $10 million commitment.

Additionally, the family office of Arthur Hayes is set to raise $250 million for its inaugural crypto-focused private equity fund, highlighting a growing institutional faith in the sector’s foundational infrastructure.

IPO Revival Might Encourage Further Crypto Involvement from Family Offices in 2026

Looking ahead, Pete Najarian, founder and managing partner at Raptor Digital, anticipates that cryptocurrencies may occupy a larger proportion of family office portfolios in 2026, especially if public markets open up for digital asset companies.

A more active IPO market, he believes, could attract families interested in gaining exposure through exchange-traded funds and other regulated channels.

Nevertheless, recent market conditions have dampened the enthusiasm. The crypto market has lost over $1 trillion in capitalization since October, with both Bitcoin and Ether plummeting over 30%.

A representative from a UAE-based family office remarked that the volatility has led some investors to prefer more stable assets like real estate. “We are still far from broader adoption,” the representative mentioned.

Yesilhark emphasized that success in 2026 will depend on maintaining discipline. Family offices that prioritize infrastructure, selective investments, and strong underwriting rather than engaging in short-term speculation are likely to remain committed through the next market cycle.