High net worth families are turning to cryptocurrency investing, according to a recent Goldman Sachs survey that found that nearly half of the company’s family office clients are curious about investing in cryptocurrency. A Goldman Sachs executive said a large proportion of the company’s family office customers are asking about blockchain and cryptocurrency technologies.
After the SPAC boom, family offices are targeting crypto investments
One recently report from Bloomberg suggests that the world’s ultra-rich families are interested in blockchain and crypto-asset investments. The report comes from the New York-based multinational investment bank and financial services company Goldman Sachs, which conducted a study that interviewed over 150 family offices.
The results suggest that wealthy families are turning to crypto after a year of unprecedented global monetary and fiscal stimulus due to “higher inflation, persistently low interest rates, and other macroeconomic developments.”
Meena Flynn, an executive in private wealth management at Goldman, told Bloomberg that a large proportion of families want to discuss “blockchain and digital ledger technology” and that family offices believe that “this technology will be as effective as that Internet”. from an efficiency and productivity point of view. “
Of those surveyed who think macroeconomic developments and higher inflation are a problem, 45% are curious about crypto assets to hedge against these issues.
The crypto industry sees an increase in participation in family offices
According to Goldman, 22% of the responding family offices manage $ 5 billion, while asset managers with $ 1 to $ 4.9 billion represent 45% of respondents. In addition, the Goldman survey shows that of all respondents, 15% of respondents have already invested in cryptocurrency and blockchain products.
While some are curious about investing in cryptocurrencies, Goldman’s survey also found that some respondents have concerns. One of the biggest concerns is whether or not crypto assets have long-term staying power.
Goldman’s survey also found that while many of the investors invest in real estate and stocks, a large proportion of these family offices are involved in investments by special purpose vehicles, also known as SPACs. Family offices were also very interested in cryptocurrency investments during the 2017 Bull Run.
This year, Fidelity Investment’s crypto subsidiary Fidelity Digital Assets saw an increase in stakes in family offices. Tom Jessop, president of Fidelity Digital Assets, recently said the company had found institutional investors and high net worth offices to be in demand Ethereum (ETH).
What do you think of Goldman’s survey showing family offices are interested in crypto investing after the SPAC boom? Let us know what you think on this matter in the comments below.
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