Why many global family offices prefer funds and ETFs when gaining exposure to crypto - London Business News | Londonlovesbusiness.com
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Why many global family offices prefer funds and ETFs when gaining exposure to crypto - London Business News | Londonlovesbusiness.com
"As digital assets continue to mature, a quiet shift is taking place among high-net-worth individuals and family offices around the world. The debate is no longer centred on whether crypto has a place in a long-term portfolio, but on how exposure should be implemented. Increasingly, professionally managed funds and exchange-traded products are becoming the preferred route, reflecting broader trends in institutional behaviour rather than short-term market sentiment."
"Managing private keys, navigating exchange risk, and handling custody across jurisdictions can introduce operational complexity that sits uncomfortably alongside traditional portfolio management. Funds and ETFs address this by packaging crypto exposure within structures that resemble other alternative investments. This shift is visible in the numbers. According to industry data, assets under management in global crypto funds exceeded USD 60 billion at their recent peak, with institutional and professional investors accounting for a growing share of inflows."
High-net-worth individuals and family offices are shifting from debating crypto inclusion to deciding how to implement exposure. Professionally managed funds and exchange-traded products are increasingly preferred because they mirror other alternative investment structures and reduce operational friction. Direct ownership raises challenges including private key management, exchange risk, custody across jurisdictions and integration with traditional portfolio operations. Crypto fund assets under management surpassed USD 60 billion at a recent peak, with institutional and professional investors driving inflows. Fund infrastructure now commonly uses institutional custody, cold storage, asset segregation and multi-layer security to meet governance and portfolio construction standards.
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