Key Takeaways
- • A European multifamily office began exploring blockchain investments in 2017 and capitalized on the 2018 bear market to make major cryptocurrency venture capital investments at depressed valuations, according to Oksana Tiedt, the office's head of funds.
- • The multifamily office made early high-conviction bets on established crypto VC firms while the broader market was in decline, positioning itself ahead of institutional adoption trends that would accelerate in subsequent years.
- • Tiedt identified two under-the-radar cryptocurrency venture capital firms worthy of institutional investor attention, signaling continued strategic focus on emerging opportunities within the digital asset ecosystem.
- • The case demonstrates how family offices and multifamily offices can outmaneuver larger traditional financial institutions by deploying capital countercyclically during crypto market downturns when valuations are distressed.
Summary
An exclusive European multifamily office achieved early-mover advantage in cryptocurrency venture capital by beginning blockchain exploration in 2017, during the nascent stages of institutional crypto adoption. According to Oksana Tiedt, the office's head of funds, the organization used the severe 2018 bear market—when most institutional capital retreated from digital assets—as an opportunistic entry point to establish high-conviction positions in prominent crypto VC firms.
This contrarian approach reflects a sophisticated understanding of market cycles and valuation discipline. Rather than viewing the 2018 downturn as a signal to avoid the sector entirely, the multifamily office recognized the bear market as a buying opportunity when risk-adjusted returns were most favorable. By deploying capital when institutional interest remained limited, the office secured favorable terms and exposure to cryptocurrency infrastructure at depressed prices.
Tiedt's leadership identifies the multifamily office as a nimble alternative to traditional banking institutions in recognizing emerging asset classes. Family offices and multifamily offices operate with longer investment horizons, less regulatory constraint than traditional banks, and governance structures that permit concentrated conviction bets on thematic opportunities. These structural advantages enabled the European multifamily office to accumulate meaningful crypto VC exposure before mainstream institutional adoption.
The office's continued focus on identifying undervalued opportunities in the digital asset space is reflected in Tiedt's identification of two under-the-radar cryptocurrency venture capital firms. This ongoing sourcing effort suggests the multifamily office maintains an active conviction in blockchain infrastructure as a long-term investment theme. As broader institutional adoption of cryptocurrency and digital assets accelerated post-2020, early positioning established through 2018 bear market investments would have appreciated significantly, validating the office's contrarian allocation strategy.
This contrarian approach reflects a sophisticated understanding of market cycles and valuation discipline. Rather than viewing the 2018 downturn as a signal to avoid the sector entirely, the multifamily office recognized the bear market as a buying opportunity when risk-adjusted returns were most favorable. By deploying capital when institutional interest remained limited, the office secured favorable terms and exposure to cryptocurrency infrastructure at depressed prices.
Tiedt's leadership identifies the multifamily office as a nimble alternative to traditional banking institutions in recognizing emerging asset classes. Family offices and multifamily offices operate with longer investment horizons, less regulatory constraint than traditional banks, and governance structures that permit concentrated conviction bets on thematic opportunities. These structural advantages enabled the European multifamily office to accumulate meaningful crypto VC exposure before mainstream institutional adoption.
The office's continued focus on identifying undervalued opportunities in the digital asset space is reflected in Tiedt's identification of two under-the-radar cryptocurrency venture capital firms. This ongoing sourcing effort suggests the multifamily office maintains an active conviction in blockchain infrastructure as a long-term investment theme. As broader institutional adoption of cryptocurrency and digital assets accelerated post-2020, early positioning established through 2018 bear market investments would have appreciated significantly, validating the office's contrarian allocation strategy.
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