According to Steven Lubka, the head of private clients and family offices, as well as the managing director at Swan Bitcoin, wealthy investors and private offices have been gravitating towards bitcoin since the downfall of Silicon Valley Bank (SVB). Lubka stated that his firm has also observed “corporations engaging in treasury diversification” and emphasized that these investors “want to own an asset that is outside” of the troubled financial system.
High-Net-Worth Individuals and Family Offices Are ‘Concerned About Long-Term Stability in the Financial System’
In 2023, three of the largest bank failures in the history of the United States occurred. Since then, affluent investors, family offices, and individuals with high net worth have been gravitating towards bitcoin. This information was shared by Steven Lubka, an executive at Swan Bitcoin, during an interview with Michelle Makori, the lead anchor and editor-in-chief at Kitco News. The conversation took place at the Bitcoin 2023 conference held in Miami.
“Since the collapse of Silicon Valley Bank we’ve seen a huge uptick,” Lubka informed Makori. “We’ve always had a slice of family office clients that have used the platform, but ever since SVB that has massively increased. These people are taking large bitcoin positions.” Lubka emphasized that these investors have a keen interest and “they want to learn more.”
Swan’s managing director further expressed that if any institutional segment is expected to be an early adopter, it is likely to be family offices due to their greater control over investing in alternative assets. Lubka told Makori that bitcoin (BTC) exhibited a positive response when the banks faced pressure. He also highlighted that high-net-worth individuals and family offices approached Swan expressing they were “concerned.”
The executive mentioned that Swan caters to a diverse range of clients but specified that, for high-net-worth individuals, his firm is “generally looking at $10 million on the individual side” and “as much as a billion on the family office side.” Lubka said that these investors “are concerned about long-term stability in the financial system.” He added:
They want to own an asset that is outside of that system.
Lubka commented to Makori that investors and family offices perceive bitcoin as a means of “diversification.” He emphasized that when BTC experienced a surge during the bank contagion, it demonstrated its resilience as a hedge. “That wouldn’t have happened in the same way, I don’t think, five years ago,” Lubka stated. He expressed confidence in bitcoin reaching the six-figure range by the end of 2024, and he further suggested the possibility of a “million-dollar bitcoin by 2030.”
What are your thoughts on the trend of wealthy investors and family offices turning to bitcoin for diversification? Share your thoughts and opinions about this subject in the comments section below.
