Family Offices Embrace Liquid Tokens, AI, and Gaming: Insights from the $100M Club Summit in Singapore
The latest Family Offices Investors Summit (FOIS), recently held in Singapore, has unveiled a significant trend among family offices managing at least $100 million in assets. These investors are increasingly pivoting towards liquid token investments, artificial intelligence (AI), and gaming as they explore alternative assets. This shift signifies a broader transformation in the investment landscape, driven by the quest for growth and innovation.
Rising Wealth in Family Offices
Globally, there are approximately 8,030 single-family offices, with their assets under management (AUM) projected to skyrocket by 189% to $9.5 trillion by 2030. The Asia-Pacific region, particularly Singapore, is set to lead this growth. According to Manana Samuseva, founder of FOIS, assets in Singapore are expected to increase by 10% to reach $5.41 trillion by 2025.
This surge in wealth is largely attributed to net inflows into alternative investments, with 37% of family offices anticipating a significant adoption of digital technology. Additionally, 32% are concentrating on sustainable investments, highlighting a shift towards responsible investing.
The Influence of Gen Z Investors
Samuseva emphasized the role of Gen Z investors—often termed the “kid investors”—in directing capital towards societal progress. These emerging asset classes are estimated to exceed $30 million in AUM, reflecting the growing importance of technology and value creation in today’s economy.
“While short-term, profit-focused tech investments have seen a slowdown, particularly amid the AI hype, these markets are becoming increasingly sensitive to external factors,” she explained. This indicates a transition towards market maturity in digital asset classes, which is further facilitated by increased accessibility and cultural shifts.
Liquid Tokens vs. Early-Stage Investments
During the summit, Kavita Gupta, founder and general partner of Delta Blockchain Fund, noted that liquid token investments are becoming more attractive compared to traditional early-stage investments. “We are witnessing a pivotal moment in tokenomics. Despite the downturn in altcoin markets, new ventures entering the token market are being valued exceedingly high by venture capitalists,” Gupta stated. This trend marks a substantial shift within the cryptocurrency industry, as liquid tokens gain favor among sophisticated investors.
The Role of AI in Investment Strategy
Trevor Koverko, a notable angel investor and co-founder of ventures like Polymath and Tokens.com, pointed out the rapid growth of data labeling within the AI sector. He emphasized the importance of establishing a global network that enables individuals to “Label to Earn,” thus transforming data labeling and distribution.
Moreover, Avichal Garg, a partner at Electric Capital, highlighted how family offices are increasingly recognizing the potential of AI, deep tech, and decentralized finance (DeFi) as key drivers of long-term innovation and growth. “Our focus is on identifying and supporting disruptive technologies and exceptional founders who promise substantial returns and transformative impact,” Garg said during a panel discussion.
Gaming: A New Frontier for Investment
Investment in gaming is also gaining momentum. Casey Grooms, Managing Partner at Rhinocorn Ventures and Soulbound, articulated the future of gaming lies in building the creator economy and leveraging user-generated content. “Community capital, along with communities united by shared interests, fun, and showcasing achievements, are the top trends in the market right now,” Grooms noted.
He emphasized the mission to transform gaming by redefining player acquisition and retention strategies, with an ambitious goal of reaching 3.2 billion gamers worldwide. This approach aims to establish a new profit paradigm for community investors.
Web3 and the Evolution of Gaming Economies
Jonathan Huang from BITKRAFT Ventures added that gaming has traditionally thrived on compelling content and engagement models, but the advent of Web3 is taking this to unprecedented levels. “Web3 fosters digital asset ownership, decentralization, and player-driven economies,” he stated. This transformation redefines how value is created, shared, and retained in gaming, unlocking the potential for games to evolve into scalable digital economies.
“We’re not just investing in games; we’re investing in the future of digital economies and how value will flow through these virtual worlds,” Huang concluded, underscoring the game-changing nature of this investment landscape.
The Growing Interest in Digital Art
The summit also touched upon the burgeoning interest in digital art as an investment avenue. Afrodet Zuri, a contemporary art curator with a decade of experience, emphasized that investors can explore new dimensions of digital value by embracing culturally significant art. This approach resonates across global markets and represents a unique investment opportunity.
Conclusion: The Future of Family Office Investments
As illustrated by the discussions at the Family Offices Investors Summit, the landscape of investing is rapidly evolving. Family offices are increasingly allocating their resources towards liquid tokens, AI, and gaming, reflecting a broader trend of diversification into alternative assets. This shift not only highlights the growing importance of technology and digital assets but also points to a future where innovative strategies drive investment decisions.
For families looking to navigate this intricate investment landscape, understanding the nuances of these emerging markets will be crucial. The convergence of technology and finance is set to create new opportunities, making it imperative for family offices to stay informed and agile in their investment strategies.
As we move towards 2030, the interplay between disruptive technologies, alternative investments, and evolving market dynamics will undoubtedly shape the future of family office wealth management.
For more insights into investing in cryptocurrencies, check out our guides on How to Buy Bitcoin, How to Buy Cryptocurrency, and What is XRP.