Jakob Palmstierna in his conclusions about the need to change investment priorities towards crypto-assets refers to data European family office Campden Wealth’s 2022 report.
“Common concerns about cryptocurrency include a lack of regulation (61% of respondents), an immature market (52%) and excessive volatility (46%).
However, the same report showed that the percentage of family offices investing in cryptocurrency has remained constant at 28% over the past year, of which 27% are looking to increase their investments in the future,” Palmsherna said.
According to the expert, most family offices are confident: cryptocurrency will be accepted worldwide as a “real currency”.
And these beliefs find support in the fact that some governments are exploring the possibility of creating their own cryptocurrencies as they move toward fully cashless payments.
Moreover, for countries like El Salvador, this is already a reality.
“My firm belief: if you’re not investing in cryptocurrency, you have a short market position. We live in a world defined by market capitalization, and a new asset class potentially has transformative benefits and opportunities,” Palmschern said.
GSR head thinks general acceptance of cryptocurrency by family investment funds is still immature.
However, against the backdrop of the cryptocurrency spring, family offices should allocate some of their allocations to invest in such assets.
Palmscherna expects that we will likely continue to see asymmetric returns over the next five to seven years, but the growth potential of digital assets will likely offset the negative.
Jacob Palmschern’s point of view runs counter to that of Gabriel Makhlouf, head of the Central Bank of Ireland (BCUS), who urged citizens to be skeptical of high-risk and dangerous investments in cryptocurrencies.