A JPMorgan report indicates that family offices are investing more in AI than cryptocurrencies, with minimal allocations to digital assets.
According to a recent JPMorgan report, major family offices worldwide are prioritizing investments in artificial intelligence, largely sidelining cryptocurrencies.
The survey covered 333 management firms across 30 countries, revealing that 65% of participants regard AI technologies as a key investment area. In stark contrast, only 17% (56 offices) view digital assets as a significant focus.
Cryptocurrencies are notably underrepresented in actual investment portfolios, with 89% of respondents indicating they have no exposure to this asset class. The global average allocation for digital currencies stands at a mere 0.4%, with Bitcoin making up just 0.2% of that figure.
Additionally, gold investments are also being overlooked, as 72% of those surveyed reported no allocations to the precious metal. Analysts at JPMorgan noted a general lack of interest in safe-haven assets, despite ongoing geopolitical tensions.
The primary sector for anticipated investments is private equity, with 37% of family offices planning to increase their stakes in this area over the next year and a half. There is also a rising interest in venture capital and growth equity, particularly as a means to engage with early-stage AI initiatives.
Respondents identified geopolitical risks as the top threat to their portfolios at 20%, followed closely by liquidity challenges and trade policy concerns, both at 12%.
It's worth noting that earlier this year, JPMorgan analysts had forecasted a surge of significant players entering the cryptocurrency market.
