Family Offices Favour Artificial Intelligence Over Cryptocurrencies

Family offices focus on AI, overlooking cryptocurrencies, says JPMorgan report.

The world’s largest family offices have turned their attention to artificial intelligence, leaving cryptocurrencies overlooked, according to a report by JPMorgan.

The bank surveyed 333 management companies from 30 countries. Sixty-five percent of respondents view AI technologies as a priority investment area. Only 17% (56 offices) consider digital assets a key topic.

Cryptocurrencies are virtually absent in the actual portfolios of family offices. Eighty-nine percent of survey participants have no exposure to this asset class. The average share of digital currencies in global capital allocation is a mere 0.4%, with Bitcoin accounting for 0.2%.

Investors are also ignoring gold. Seventy-two percent of respondents reported zero investments in the precious metal. Bank analysts noted a low appetite for safe-haven assets, despite geopolitical concerns.

Private equity emerged as the leader in planned investments. Thirty-seven percent of offices intend to increase their share in this sector over the next 12-18 months. Interest is growing in venture financing and growth equity investments, seen as a way to enter early stages of AI projects.

Geopolitics was identified as the main risk for portfolios by 20% of respondents. Liquidity issues and trade policy followed, each cited by 12%.

Earlier in January, JPMorgan experts forecasted an influx of major players into the crypto industry.