By Michael Henley and Peter Kim
Cryptocurrency is no longer a fringe asset. With more institutional players entering the space and regulatory clarity improving, digital assets have matured into a legitimate part of the modern investment conversation.
At Brandywine Oak Private Wealth, we already incorporate crypto into many of our clients’ portfolios (where appropriate) and always as part of a broader Family Wealth Plan. For affluent families, crypto is not about speculation. It’s about being intentional, diversified, and forward-thinking with the right allocation and structure.
Here’s how we help families think strategically about digital assets.
The Role of Crypto in an Investment Portfolio
For our clients, crypto typically plays a supporting role, not a starring one. Most of the families we work with who hold crypto do so as a small satellite position, often between 1–5% of their overall portfolio.
Why invest in crypto? While digital assets like Bitcoin and Ethereum can still be volatile, they can offer exposure to innovation, emerging technologies, and uncorrelated returns. Over time, they may also serve as a hedge against monetary policy risk, especially in a world where fiat currencies face mounting debt pressure. Like gold and other commodities, digital assets can serve as “real assets,” decoupled from traditional correlated asset-class price movements. (Think: zig while the others zag.)
We don’t recommend crypto for everyone. But for certain individuals, it can provide an added layer of diversification and innovation exposure within a long-term plan.
A More Mature Market Backed by Clearer Rules
In July 2025, the federal government passed the Genius Act, the first major stablecoin-specific legislation in U.S. history. This law created a regulatory framework for payment stablecoins, requiring 1:1 backing with U.S. dollars or short-term Treasuries, monthly reserve disclosures, and compliance with federal banking rules.
This is not a theoretical development; it’s a turning point. The law gives crypto-backed financial tools the kind of legal clarity investors have long been waiting for, and more legislation is likely on the way. As of September 2025, the CLARITY Act and CBDC Anti-Surveillance State Act are both advancing through Congress, having passed in the House.
In this new environment, regulated crypto exposure is no longer the Wild West. Investors can now access digital assets via major custodians, SEC-registered funds, and fiduciary-aligned advisors like Brandywine Oak.
How We Build Crypto Into Client Portfolios
When crypto belongs in a portfolio, we treat it like any other asset class:
- It must serve a clear purpose and strategic position in the investment mix.
- It should be appropriately sized to the client’s overall risk tolerance.
- It must be held in a tax-conscious and secure structure.
Depending on the situation, our clients’ crypto exposure might include:
- Individual coin ETFs
- Index-style digital asset funds that hold a diversified crypto basket
- Direct custody of digital assets with a qualified institutional provider
- Stablecoins used for international liquidity or advanced income strategies
Every decision is tied back to the client’s broader Family Wealth Plan. We don’t chase trends. We build with purpose.
Tax Planning Opportunities
Crypto is not only an investment, it’s also a tax planning tool.
We help clients:
- Consider harvesting crypto losses to offset capital gains in taxable accounts
- Utilize appreciated crypto for donations to donor-advised funds or charities
- Navigate crypto-specific tax reporting and IRS compliance
- Consider asset location (e.g., when to hold crypto in tax-deferred accounts)
Given the IRS’s evolving guidance around staking income, cost basis, and wash sales, careful coordination with your tax advisor is essential. Our firm works closely with our in-house tax practice to help align crypto within a client’s overall strategy.
What We Don’t Recommend
We’re not here to hype up meme coins or promote speculative behavior. We do not recommend:
- Chasing crypto for short-term gains
- Holding digital assets on unregulated exchanges
- Allocating outside of your risk comfort zone
- Making crypto decisions without integration into your broader financial plan
In our experience, crypto works best when it’s treated like any other asset, with discipline, clarity, and a long-term lens.
We View Crypto As a Tool, Not a Gamble
As with any emerging asset class, crypto has real risks. But with thoughtful planning and proper sizing, it can also offer meaningful opportunities, especially in a world that continues to digitize at an ever-faster pace.
At Brandywine Oak, we guide families in determining if cryptocurrency is a suitable addition to their investment portfolio and, if so, how to integrate it judiciously. If you’re curious about digital assets or want a second opinion on your current exposure, we’re happy to assist.
Ready for a more strategic conversation about crypto?
Call (484) 785-0050, email contact@brandywineoak.com, or get started online to learn how we can help you understand and use crypto strategies in your investment portfolio.
Frequently Asked Questions About Investing In Crypto
Is cryptocurrency a good investment for affluent families?
It can be if it’s part of a broader strategy. At Brandywine Oak, we don’t view crypto as a way to “get rich quick.” For wealthy families, digital assets may offer diversification and exposure to innovation, but only in the right structure and with the right sizing, usually a small portion of the overall portfolio.
What are the tax considerations when investing in crypto?
Crypto has unique tax rules that can trip up even experienced investors. Our team works with our in-house tax practice to help clients harvest crypto losses, donate appreciated assets to charities, and consider where to hold crypto (taxable vs. tax-deferred accounts). With the IRS paying closer attention, it’s essential to plan ahead and coordinate with a tax professional.
How can I invest in crypto without taking unnecessary risks?
The key is to avoid hype and focus on integration. We use institutional-grade tools such as ETFs, diversified digital asset funds, and qualified custodians to help clients access crypto in a structured, tax-aware, and best-practice-aligned way. Every recommendation connects back to your Family Wealth Plan, no speculation, just purpose-driven planning.
About Michael
Michael Henley is the Founder and CEO of Brandywine Oak Private Wealth, a private wealth management and registered independent advisory firm headquartered in Kennett Square, PA. Over the course of his 20-year career, Michael has been dedicated to helping wealthy individuals and families plan and manage all aspects of their finances and investments. With a passion for helping others look behind the curtain and understand the complex world of finance, he develops close relationships with clients as he helps them progress toward their financial goals. Michael loves to provide clarity and alleviate financial anxiety, help prevent families from overpaying in taxes, and give wealthy families permission to enjoy their life savings. He says, “No work is more gratifying than giving families outcomes to what matters most to them.”
Michael holds the CERTIFIED FINANCIAL PLANNER®, Certified Private Wealth Advisor®, Chartered Retirement Planning Counselor℠, and Retirement Management Advisor® designations. Residing in Chadds Ford, PA, with his two children, he enjoys outdoor activities, particularly maintaining trails on his property, hiking with his dogs, and being an actively engaged dad, always taking his kids everywhere. Michael’s latest hobby is tennis and he recently started ice skating to join his daughter Savannah. He can also be found moving logs to the firepit with his son Maverick on the tractor. Michael serves on the board of United Way of Southern Chester County and loves mentoring younger advisors. Great mentors helped him succeed, and he’s convinced that every leader needs to both have mentors and be a mentor. To learn more about Michael, connect with him on LinkedIn.
About Peter
Peter is the Chief Investment Officer (CIO) and a Private Wealth Manager at Brandywine Oak Private Wealth, where he oversees the portfolio strategies and investments. He brings over fifteen years of experience in investment management, portfolio strategy and design, and investment oversight and due diligence.
Prior to joining Brandywine Oak, he was a Vice President at Goldman Sachs, working in both the investment management team and a multi-family office specializing in advanced planning and investment management for ultra-high net worth families and institutions. Peter holds the Chartered Financial Analyst designation.
Peter lives in Chester Springs with his wife, Rachel, and their three sons, Ryder, Declan, and Cash.
Brandywine Oak Private Wealth is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
