In a region long shaped by political instability, capital restrictions, and recurring inflation shocks, some wealthy Latin American families are increasingly viewing bitcoin as a tool for preserving wealth. Instead of relying only on offshore banking, real estate, or gold, they are beginning to consider crypto assets as a more flexible and accessible alternative.
Inflation and capital controls are driving demand
According to the report, at least two cryptocurrency funds aimed at affluent Latin American clients launched in 2017. While both are based abroad, their client base is said to consist largely of family offices from Argentina, Central America, Mexico, and the Caribbean. Carlos Mosquera, founder of Solidus Capital, said the region’s volatility is pushing these families toward cryptocurrencies as a new safe haven.
The report draws a contrast with East Asia and other markets, where many investors entered bitcoin during its sharp price rally. In Latin America, by comparison, crypto is presented more as a defensive response to economic uncertainty. Mosquera pointed to Venezuela’s runaway inflation, which has eroded savings and purchasing power, as a case that highlighted bitcoin’s practical appeal. Crypto trading has also offered some users a way to move value despite tightening controls on foreign transfers and access to U.S. dollars.
Crypto gains recognition as a new asset class
The second vehicle highlighted in the report is the Miami-based Crypto Assets Fund, which began operations in September. Founder Roberto Ponce Romay said he believes cryptocurrencies will evolve into a new asset class, similar to stocks and bonds. The fund follows a passive index approach, holding assets according to their market capitalization.
By his account, the fund had already accumulated $15 million in crypto assets under management. Ponce also said he planned to launch a second, actively managed fund in 2018. His targets were to expand the passive fund to $50 million and raise $100 million for the new vehicle, which would focus exclusively on cryptocurrencies.
More broadly, the development suggests that in regions exposed to hyperinflation and policy uncertainty, bitcoin is being seen not only as a speculative asset but also as a cross-border store of value for wealth preservation.