A recent Goldman Sachs survey showed that high-net-worth households are turning to cryptocurrency investment. The survey found that nearly half of the company’s family office customers are curious about crypto asset investment. A Goldman Sachs executive further stated that most customers of the company’s family office are asking about blockchain and cryptocurrency technology.
After the SPAC boom, the family office aims to invest in crypto
A recent Bloomberg report indicated that the world’s super-rich families are very interested in blockchain and crypto asset investments. The report comes from Goldman Sachs, a multinational investment bank and financial services company headquartered in New York, which conducted a survey of more than 150 family offices.
The survey results show that after a year of unprecedented global monetary and fiscal stimulus, high-net-worth households are turning to cryptocurrency because of “rising inflation, long-term low interest rates, and other macroeconomic developments.”
Meena Flynn, a private wealth management executive at Goldman Sachs, told Bloomberg that most families want to discuss “blockchain and digital ledger technology”. At the same time, the family office believes that “this technology will be as influential as the Internet. From the perspective of efficiency and productivity.”
Among the respondents who believe that macroeconomic development and rising inflation are a problem, 45% are curious about crypto assets to hedge these problems.
The crypto industry sees increased involvement of family offices
According to Goldman Sachs, 22% of family offices manage US$5 billion, and asset management companies have between US$1 billion and US$4.9 billion under management, accounting for 45% of respondents. In addition, the Goldman Sachs survey shows that among all respondents, 15% of respondents have invested in cryptocurrency and blockchain products.
Although some people are curious about investing in cryptocurrency, the Goldman Sachs survey also pointed out that some interviewees expressed concern about it. One of the biggest concerns is whether crypto assets have long-term staying power.
The Goldman Sachs survey also pointed out that although many investors invest in real estate and stocks, a large proportion of these family offices are involved in special purpose acquisition companies, also known as SPACs. During the bull market in 2017, the family office was also very interested in cryptocurrency investment.
This year, the participation of the family office of Fidelity Digital Assets, an encryption subsidiary of Fidelity Investments, has increased. Fidelity Digital Assets President Tom Jessop recently explained that the company has noticed that institutional investors and high-net-worth offices have accelerated the demand for Ethereum (ETH).
What do you think of the Goldman Sachs survey showing that family offices are interested in crypto investment after the SPAC boom? Please tell us your thoughts on this topic in the comments section below.
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