A recent poll by Apeiron Ventures shows that around 40% of Family offices who are looking to invest or already invested view Cryptocurrencies as a new asset class.
Crypto assets have emerged to be a new asset class for many investors, most of whom entered the market in 2017. It is an interesting investment opportunity as it can be viewed with multiple lenses from a new currency that will replace the dollar to an uncorrelated asset that could be a hedge against the current financial system.
Many Crypto hedge funds emerged in 2017-18 to invest in ICO’s which have raised more money than traditional Venture Capital in 2017. This has caught the attention of bigger pools of capital like Family Offices, endowments, pension funds, etc.
Recently a poll was conducted of 100 Family Offices in an event FO256 which intended to bring Crypto entrepreneurs and Family offices together. The speakers included big names in Crypto like Jeremy Garnder, Ken Seiff, Andy Bromberg, Anthony Pompliano, Kyle Samani among others.
The majority (80%) of the Family Offices who attended the event had already invested in one or more Crypto assets, about 10% were close to or likely to invest by year end.
It is interesting to note that there is no clear consensus on how traditional investors view Crypto assets, A majority (38%) of attendees viewed it as a new asset class.
A majority of utility tokens issued by ICO’s seems to be closer to be securities (from a US Standard) although there is no regulatory clarity on it. So the funds could look at it as an investment in the private equities, which may not necessarily be the case for protocols like Bitcoin and Ethereum.
David Nage the organizer of the event Tweeted:
The poll also showed that a majority of investors (41%) their first non-Bitcoin/Ethereum investment in 2017. 32% of them had never invested in any other tokens apart from Bitcoin or Ethereum.
4/What we learned from #FO256: the attendees submitted questions/concerns about the asset class; many surrounding valuation, reporting of performance, regulation and counterparty risks. Below are the top 10 questions submitted. pic.twitter.com/ONWvlR3YEj
— David Nage🎯 (@DavidJN79) October 4, 2018
David concludes the survey with these following points:
- The interest in the asset class has been overwhelming in the recent past (over 400 people registered, over 120 family offices confirmed for the event).
- A majority of investors have had an exposure to the asset class in the past 6-12 months. Most of them are placing Crypto assets in pre-existing buckets which may cause issues in due diligence, valuation, and overall experience.
- There are over 10000 family offices in the US alone who handle $7-10 Trillion, an honest discussion on where we are in the maturation curve is needed.
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