Why Family Offices Should Think Differently About Bitcoin | Eric Runge
Key Takeaways
- Eric Runge emphasizes that family offices must prioritize comprehensive investor education regarding monetary theory and custody before allocating capital to Bitcoin.
- Understanding custody is critical, as buying Bitcoin on an exchange differs significantly from holding your own keys using single-signature or multi-signature setups.
- Tax-loss harvesting can be effectively utilized during periods of Bitcoin volatility to realize losses while maintaining long-term generational exposure.
- Spot Bitcoin ETFs and downside-risk-mitigated ETFs utilizing options strategies offer alternative pathways for investors uncomfortable with heavy drawdowns.
- Generational wealth preservation requires family offices to view Bitcoin not merely as a speculative cryptocurrency, but as a potential long-term store of value rooted in sound monetary principles.
In this episode of Family Office Investing Podcast & Investor Insights | Arthur's Round Table, Arthur Bavelas sits down with Eric Runge, founder of Veritas Bitcoin Strategies, for a practical discussion about Bitcoin for family offices—from simply buying and holding Bitcoin to custody, risk management, ETFs, tax-loss harvesting, and long-term generational wealth.
Arthur and Eric discuss:
• Why family offices are increasingly looking at Bitcoin
• Bitcoin versus cryptocurrency
• Why understanding custody is critical
• What “holding your own keys” actually means
• Single-signature versus multi-signature custody
• Why buying Bitcoin on an exchange isn't necessarily the same as self-custody
• Whether family offices should simply buy and hold Bitcoin
• Tax-loss harvesting strategies involving Bitcoin
• Bitcoin's notorious volatility
• Spot Bitcoin ETFs versus owning Bitcoin on-chain
• Downside-risk-mitigated Bitcoin ETFs
• Bitcoin treasury companies and Strategy/MicroStrategy
• Why counterparty risk still matters
• Borrowing against Bitcoin
• Bitcoin payment rails and Lightning
• How a family office should think about Bitcoin allocation
• Why investor education should come before allocation
• Bitcoin versus Ethereum and other cryptocurrencies
• Bitcoin as a potential long-term store of value
• Generational thinking and family office wealth
One of the most important parts of the conversation concerns custody.
Eric argues that sophisticated investors can spend enormous amounts of time conducting diligence on private equity, real estate, and other investments—yet sometimes buy Bitcoin without understanding something as fundamental as who actually controls the keys. He explains how multi-signature custody can introduce additional layers of security by requiring multiple keys rather than relying on a single seed phrase.
The conversation then turns to what happens after a family office decides it wants Bitcoin exposure.
Eric generally views on-chain Bitcoin as a long-term holding rather than a trading vehicle. He also discusses a strategy many investors may overlook: tax-loss harvesting. Because of Bitcoin's volatility, declines can potentially create opportunities to realize losses while maintaining exposure, subject to the applicable tax rules and the investor's circumstances.
For investors uncomfortable with Bitcoin's historically significant drawdowns, Eric discusses portfolios using spot Bitcoin ETFs alongside downside-risk-mitigated Bitcoin ETFs, which use options strategies designed to reduce volatility in exchange for limiting some upside.
Perhaps the broader question is whether Bitcoin should be viewed merely as another speculative asset—or as something fundamentally different.
Eric explains why his conviction ultimately led him away from treating Bitcoin as simply another cryptocurrency. His interest is rooted in monetary theory and his belief that Bitcoin addresses fundamental problems he sees in fiat monetary systems.
The conversation ultimately becomes about something larger than Bitcoin's price:
How should families think about capital when their time horizon isn't the next quarter—or even the next decade—but multiple generations?
Eric says his ideal family office client thinks generationally and wants to transfer not merely wealth, but a way of thinking about wealth to future generations.
About Eric Runge
Eric Runge is the founder of Veritas Bitcoin Strategies and focuses on helping family offices and high-net-worth investors understand and manage Bitcoin exposure. His career in financial services began around 2005, and his study of economics, monetary systems, and the U.S. dollar eventually led him to focus his practice on Bitcoin.
Eric is also the author of Bitcoin and the Family Office and The Cost of Consensus. He describes the latter as incorporating concepts of self-differentiation and remaining oneself under pressure while connecting those ideas to Bitcoin as a differentiated asset.
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Frequently Asked Questions
Why should family offices think differently about Bitcoin?
Family offices must approach Bitcoin with a multi-generational time horizon, viewing it through the lens of monetary theory and fiat system challenges rather than as short-term speculative crypto.
What is the difference between single-signature and multi-signature custody for Bitcoin?
Single-signature custody relies on a single seed phrase to control assets, whereas multi-signature custody introduces layers of security by requiring multiple keys to authorize transactions.
How can family offices manage Bitcoin's notorious volatility?
Investors can manage volatility by utilizing spot Bitcoin ETFs alongside downside-risk-mitigated ETFs that employ options strategies to limit drawdowns in exchange for capped upside.
What role does tax-loss harvesting play in Bitcoin investing?
Because of Bitcoin's price fluctuations, sharp declines can create opportunities for family offices to realize losses for tax purposes while maintaining their core market exposure.
