Goldman Sachs Report Shows Dip in Crypto Investments Among Family Offices
A recent report published by Goldman Sachs on May 8 shows a decline in the certainty of family offices investing in digital assets. According to the report titled “Eyes on the Horizon: Family Office Investment Insights,” there has been a 32% decline in family offices investing in digital assets since last year. Digital assets encompass cryptocurrencies, nonfungible tokens (NFTs), decentralized finance (DeFi), and blockchain-focused funds.
Out of the family offices that had invested in digital assets, 19% said their primary motivation was belief in the power of blockchain technology. Only 8% and 9% cited speculation and portfolio diversification as their motivation for investing in digital assets, respectively.
Investments in cryptocurrencies among family offices interested in digital finance have risen from 16% to 26% since last year. However, the interest in potential crypto investments this year took a significant dip, with just 12% of investors indicating their interest in this field. Last year’s figure was 45%. The report suggests that opinions on cryptocurrencies have become more defined, with more family offices either investing in cryptocurrencies or becoming disinterested in them.
The report surveyed 166 home offices by distributing questionnaires via email between January and February 2023. Ninety-five of these offices were based in the Americas, 34 in Europe and the Middle East, and 37 in the Asia Pacific.
Goldman Sachs performed well during the recent banking crisis, with investors choosing to rotate their portfolio investments to the bank. Goldman Sachs’ money funds saw $52 billion in inflows, a 13% surge, which is the largest volume of inflows since the onset of the COVID-19 pandemic.
It remains to be seen whether the declining interest in crypto investments by family offices will continue, and what implications this may have for the crypto market in the long run.
Sources:
– Goldman Sachs Report
– Cointelegraph
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I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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