70% of Americans invested in cryptocurrency today think that they can become overnight crypto billionaires.
A Harris Poll Survey of 1,989 adults conducted in the USA found that of those who invest in cryptocurrency, 70% believe they have the means to become billionaires compared to 44% of respondents who are not invested in cryptocurrency.
While certainly sounding optimistic, this is not a confidence that is shared with Family Offices. Arguably the most fluid investors in the world.
Family Offices at their very core are about wealth preservation. They are small entities created by wealth owners to both manage and preserve their family wealth for generations still to come and so they hire extraordinary investment teams to make calculated choices of where to invest their money based on precedent, research and risk.
Cryptocurrency as an asset class is extraordinarily volatile. Its highly technical requirements, poor reporting and stringent regulation in the likes of Singapore has not painted it as a favourable asset class, nor has its lack of precedent or high unpredictability.
That is not to say that Family Offices are not curious. Family Offices invested in bio and pharma technology in the masses during the pandemic and since the end, more than half of all Family Offices say their risk tolerance has increased. But while both of these realms alongside the likes of e-sports which also peaked Family Office interest recently, have a precedent with Family Office investors, cryptocurrency has not and we thought it was time to put a number on it.
In a bid to cut through all of the headlines about Family Office interest and intentions, we surveyed our Family Office network to determine how many Family Offices are actually invested in cryptocurrency today and the results speak for themselves.
Just one in five Family Offices are invested in cryptocurrency and for those invested, the allocation is extremely small.
This does not scream the same level of confidence as the some 70% of Americans invested in cryptocurrency today.
Family Offices like precedent. In the last 12 months, they have increased their private equity investments by 63% and made more direct investments than ever before. They did so not because of a sudden urge to try something a little different but because they had experienced years of proven returns.
While cryptobillionaires exist, they are not frequent and where there are highs, there are extreme lows and there is not much evidence to suggest that those highs equate to becoming overnight billionaires.
Do you believe crypto investors have the potential to become overnight billionaires?