Report: 26% of Family Offices Invested in Crypto, Up 16% From 2021

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Crypto investment might have suffered a hit due to the prolonged winter, but reports from investment firm Goldman Sachs have shown that family offices are still keen on digital assets. 

According to a recent survey done by Goldman Sachs, the number of family offices invested in digital assets on a global scale has seen a 16% increase since 2021, hitting a new high of 26%. The report showed more institutional presence in cryptocurrency but also showed shrinking interest among family offices that have yet to invest in digital assets.

Family Offices Believe in Blockchain

Family offices are asset management companies that oversee the finances and affluence of highly wealthy individuals and families. It provides services such as insurance, budgeting, investment procurement, wealth transfer, and so on.

The survey conducted by Goldman Sachs covered over 166 family offices globally, with 57% in America, 21% in Europe, Africa, and the Middle East (EMEA), and the other 22% in Asia Pacific. Goldman Sachs noted that only institutional-like family offices, which have the basis of their assets in line with other institutional investors, participated in the poll.

A majority of crypto-invested respondents who stated their key motivation for investing in cryptocurrency noted that a belief in the power of blockchain technology was a major factor. Others said notions like portfolio diversification and DeFi applications were their reasons for investing in digital assets.

A higher number of family offices in Asia Pacific are also interested in investing in cryptocurrency in the future, far larger than their American and EMEA counterparts. A staggering 27% of crypto-non-investing respondents in Asia Pacific look forward to adding digital assets to their portfolio, with only 6% and 8% adopting the possibility in America and EMEA, respectively. The recent FTX capitulation and regulators’ crackdown in America contributed to the decline in interest among US and European respondents.

Not the Same for Crypto

One major point the survey revealed was the plunging belief among crypto non-investors in the industry. The polls showed that 62% of respondents who have not invested in crypto are turning their backs on diving into the sector in the future. Moreover, the percentage increased drastically, from 39% in 2021 to 62% in 2023.

Also, respondents who are not invested but hope to invest in the future took a dip from 45% to 12%, showing declining enthusiasm among investors for digital assets. The crypto market has not particularly impressed investors, as it has plunged since 2021, with Bitcoin already down 60% from its all-time high.

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