As digital assets continue to mature, a quiet shift is taking place among high-net-worth individuals and family offices around the world. The debate is no longer centred on whether crypto has a place in a long-term portfolio, but on how exposure should be implemented. Increasingly, professionally managed funds and exchange-traded products are becoming the preferred route, reflecting broader trends in institutional behaviour rather than short-term market sentiment.
Making crypto investable at an institutional level
For many family offices, direct ownership of cryptocurrencies presents more friction than appeal. Managing private keys, navigating exchange risk, and handling custody across jurisdictions can introduce operational complexity that sits uncomfortably alongside traditional portfolio management. Funds and ETFs address this by packaging crypto exposure within structures that resemble other alternative investments.
This shift is visible in the numbers. According to industry data, assets under management in global crypto funds exceeded USD 60 billion at their recent peak, with institutional and professional investors accounting for a growing share of inflows. While market cycles affect headline figures, surveys of family offices consistently show rising interest in gaining exposure through managed vehicles rather than direct holdings.
“For many professional investors, how an asset fits into their existing systems is just as important as returns,” says Tom Hickey, Head of Distribution at Neverwinter Bitcoin Fund. “Funds solve many of the practical issues that otherwise come with operating directly in crypto markets.”
Custody standards and portfolio construction
Security and governance remain central considerations. Over the past decade, crypto fund infrastructure has evolved significantly. Today, most established crypto funds rely on institutional custody providers, using cold storage, asset segregation, and multi-layer security processes similar to those applied in traditional markets. This development has helped lower one of the key barriers for conservative capital.
Diversification has followed a similar trajectory. Early crypto exposure often meant holding a single asset, most commonly Bitcoin. By contrast, many modern crypto funds spread exposure across multiple assets or strategies, including market-neutral or long-short approaches. The objective is not to eliminate volatility, which remains a defining feature of the asset class, but to manage concentration risk and reduce dependence on a single market outcome.
This trend mirrors broader alternatives investing, where family offices have long favoured diversified structures over concentrated bets. Managers such as Neverwinter operate within this broader ecosystem, but the approach is shared across a wide range of crypto-focused funds globally.
Technology, fees, and the value of experience
Technology has also reshaped how professional investors operate in crypto markets. Algorithmic trading systems and neural network models are now widely used across the industry, particularly in liquid markets such as Bitcoin derivatives. These systems analyse large volumes of data in real time, allowing funds to respond quickly to changes in liquidity and volatility.
At the same time, scale brings cost advantages. Institutional funds typically benefit from lower exchange fees and more efficient execution than individual investors. Even small differences matter. A reduction of 20 to 40 basis points in annual trading costs can materially affect net results over time, especially in active strategies.
Behind these developments is a growing pool of experienced professionals. Many crypto fund teams now combine backgrounds in traditional finance, quantitative research, compliance, and market infrastructure. This blend reflects a broader professionalisation of the sector. As Hickey observes, “What has changed most in recent years is not the market itself, but the level of operational and risk structure applied to it.”
For global family offices, funds and ETFs offer a way to engage with crypto markets that aligns with long-term governance and reporting standards. Rather than treating digital assets as a standalone experiment, these vehicles allow crypto exposure to be managed alongside other asset classes. As the market continues to evolve, this structural alignment may explain why professionally managed crypto funds have become a central entry point for long-term capital.
The above information does not constitute any form of advice or recommendation by London Loves Business for investment, nor is it intended as investment advice, financial advice, or trading advice. Cryptocurrency mining and staking involves risk. There is potential for loss of funds. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.
