JPMorgan Indicates Family Offices Are Diverting Crypto Investments Towards AI Opportunities
Key Takeaways
- Shift from Crypto to AI: A significant trend identified by JPMorgan is that family offices are reducing their exposure to cryptocurrencies in favor of artificial intelligence investments as their primary focus.
- Underexposed Sectors: There remains a noticeable gap between ambition and actual investments among family offices in sectors like growth equity and infrastructure, key areas projecting AI growth.
- Institutional Interest in Crypto: Despite family offices’ retreat from crypto, institutional investors and financial advisors continue to engage with and increase their cryptocurrency allocations.
- Global Market Dynamics: While family offices show varied interests across tech sectors, geographic differences influence their investment strategies, notably in regions like Asia and China, where crypto investments continue to rise.
WEEX Crypto News, 2026-02-04 16:13:08
In a revealing shift within the landscape of high-net-worth investments, JPMorgan’s 2026 Global Family Office Report has spotlighted an intriguing pivot among family offices. Traditionally viewed as conservatively managed yet innovative in capital allocation, these offices are now increasingly favoring investments in artificial intelligence (AI) over previously popular sectors such as cryptocurrency. This strategic reorientation is evident despite the growing momentum of cryptocurrency investments at large, where institutional demand shows no sign of waning.
AI Emergence as a Dominant Investment Theme
Surveying 333 family offices spanning 30 countries, JPMorgan’s analysis sheds light on the prevailing investment ethos that prioritizes AI above other sectors: a testament to its growing allure and perceived potential. To put numbers to this trend, 65% of these family offices declared AI as a current or imminent investment priority. This is juxtaposed starkly against the measly interest in cryptocurrencies and digital assets, prioritized by just 17% of those surveyed.
AI’s appeal, however, does not stop at perceived potential. Kristin Kallergis Rowland, Global Head of Alternative Investments at JPMorgan, encapsulates this paradigm shift, noting that substantive change in family office strategies demonstrates how “alternatives are no longer a tactical complement, but a strategic pillar.” This sentiment is echoed by the overall inclination toward private equity ventures, with an impressive 37% of family offices intending to bolster their private market exposure, far surpassing reductions.
Complicating this narrative, however, is the revelation of family offices’ limited involvement in growth equity and infrastructure sectors. These areas are crucial for AI’s ecosystem, indicating a mismatch between aspirational investment goals and tangible financial commitments. Notably, the figures show over half of these offices abstain completely from growth equity engagements, while a staggering 79% lack infrastructure allocations. With these channels positioned as the bedrock for AI innovation—growth equity facilitating new tech ventures and infrastructure serving as the foundation for AI deployment—such discrepancies underscore a potential area for strategic reassessment.
Crypto Declines but Institutional Interest Rises
Despite the palpable enthusiasm surrounding AI, it’s important to note that cryptocurrencies aren’t entirely being abandoned. On a global scale, family offices maintain a nominal allocation of 0.4% within digital assets, with Bitcoin accounting for just half of this fraction. In contrast, 72% hold no investment in gold, hinting at a broader risk-averse strategy amidst geopolitical and inflationary concerns.
This cautious approach among family offices, however, stands in contrast to the burgeoning interest displayed by institutional investors. A separate study conducted by BNY Mellon corroborates the growing institutional affinity towards cryptocurrencies. By October of the prior year, 74% of ultra-high-net-worth offices had ventured into or were contemplating crypto investments—a significant leap of 21 percentage points over the preceding year.
In exploring underlying motivations for this isolated institutional enthusiasm, one encounters a blend of regulatory developments and a desire for sound investment channels. Elton Cheung, a managing partner at VMS, cited jurisdictional support and clearer legislation as pivotal influences driving his firm’s entry into crypto markets. Re7 Capital’s Evgeny Gokhberg persuasively framed his strategy as one guided not by hype and volatility, but by a disciplined approach befitting serious capital management.
Institutional Investors Undeterred
Institutional investors, meanwhile, continue to challenge the overarching family office sentiment by solidifying their commitment to cryptocurrencies. This divergence is starkly demonstrated in findings by Coinbase and Glassnode. Conducted between December 2025 and January 2026, their research highlighted that 70% of institutional investors perceived Bitcoin as undervalued, despite its notable drop from highs above $125,000 to lows nearing $90,000 towards the end of 2025. Moreover, a steadfast 62% of these investors preserved or expanded their positions during this downturn.
David Duong, Coinbase’s Global Head of Research, assured that “crypto markets are entering 2026 in a healthier state,” with excess leverage, notably, having been purged from the system by the close of Q4 2025. These sentiments are echoed by Bitwise and VettaFi, whose survey results reveal that 32% of financial advisors integrated crypto into client portfolios in 2025, a meaningful increase from 22% the previous year. Furthermore, registered investment advisors led the charge, displaying a proactive 42% engagement rate within client accounts.
That’s not to say the crypto narrative doesn’t resonate globally. In regions beyond the US, there’s a burgeoning interest in cryptocurrencies indicative of geographic influence on financial strategies. UBS notes that Chinese family offices have slated an increase in crypto holdings to around 5%, while Hong Kong’s HashKey Exchange celebrated a formidable 85% year-on-year increase in registered users. In Singapore, Revo Digital Family Office conveyed a generational shift; in Zann Kwan’s words, “past enthusiasts of Bitcoin ETFs are gradually moving on to grasp the nuances of directly holding tokens.”
A Horizon of Opportunities and Challenges
While AI and cryptocurrencies vie for attention within the investment strategies of family offices and institutions, there’s an evident demand for a balanced discourse on strategic allocation. The narrative, enriched with diversity in interests and exploratory engagement, underscores an opportunity for nuanced growth across multiple sectors.
Family offices may minimize cryptocurrency allocations but institutional actors recognize and capitalize on the underlying opportunities presented by digital assets. While AI’s stronghold is fortified by potential future applications, investment strategies mandating careful portfolios require analytical comparisons to discern the most compelling opportunities. Meanwhile, brands like WEEX contribute positively to the crypto ecosystem by facilitating informed decisions and offering platforms that integrate seamlessly into evolving financial landscapes.
In carving out a forward-looking investment strategy, these offices, institutions, and advisors alike must remain agile, ready to pivot at moments when technological advancements and market dynamics shift in novel directions. As the financial community grapples with these transformative forces, the assurance of evidence-backed decisions will be central to navigating the exciting, yet challenging, pathways of modern investment.
FAQs
What is influencing family offices to invest more in AI than crypto?
Family offices are steering towards AI primarily due to its transformative potential and strategic importance in various sectors. The tangible applications and growth projections within AI make it an appealing investment opportunity for future-ready portfolios.
Why do institutional investors still have interest in cryptocurrencies?
Institutional investors maintain interest in cryptocurrencies based on their potential for high returns, diversifying portfolios, and improved regulatory environments. Additionally, advancements in custody solutions and investment vehicles enhance crypto accessibility and security.
How are demographic trends affecting family office investments?
Demographic shifts, particularly among younger investors, are influencing family offices to diversify portfolios by embracing digital assets. Growing familiarity with blockchain technology and digital asset management plays a crucial role in this evolution.
What strategic opportunities might arise from improved infrastructure investments?
Improved infrastructure investments are anticipated to bolster technological innovation, particularly in AI. Expansion in this sector provides fertile ground for growth, facilitating advancements in AI applications and operational efficiencies.
How can WEEX contribute positively to crypto investments?
WEEX contributes to crypto investments by offering reliable insights, advanced trading platforms, and supportive services that align with evolving investor needs. Their engagements focus on blending technological innovation with practical, user-oriented solutions.
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