32 percent of family offices presently own interests in digital assets: Report

The general public is still apprehensive about crypto assets, but certain family offices are waiting for the right time to invest

Published: May 10, 2023 06:54:51 PM IST

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According to a report by Goldman Sachs titled "Eyes on the Horizon: Family Office Investment Insights," which was released on May 8, around 32 percent of family offices presently own interests in digital assets. Tokens that can't be spent, also known as nonfungible tokens (NFTs), decentralized finance (DeFi), and funds centered on blockchain technology, are all included in this category.

The majority of investors (19 percent) cited a belief in the power of blockchain technology as the reason for their decision to invest in digital assets. Only eight percent and nine percent, respectively, cited speculation and portfolio diversification as their motivations for investing in digital assets.

Since 2021, the share of investors engaged in digital finance with money invested in crypto assets has dramatically increased, going from 16 percent to 26 percent of their total assets. This year, however, only 12 percent of investors have indicated that they are interested in possible investments in crypto, which is a significant drop from the 45 percent who indicated this interest in 2021.

According to the findings of the report, opinions regarding crypto assets appear to have crystallised. While a greater percentage of family offices now have investments in crypto, the percentage of family offices that do not have investments in crypto assets and are not interested in investing in the future has grown more.

This study is predicated on the findings of a survey conducted between January and February 2023 and consisted of questionnaires sent to home offices through email. In total, 166 home offices took part in the survey; 95 of those offices are located in the Americas, 34 in Europe and the Middle East, and 37 in the Asia Pacific region.

Due to the current banking crisis, many investors decided to rotate the investments in their portfolios, resulting in Goldman Sachs appearing to be one of the top winners. The money market funds managed by Goldman Sachs have seen the largest monthly volume of new investments since the Covid-19 pandemic emerged, totaling $52 billion. This is a growth of 13 percent over the previous month's inflows.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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