High net-worth families are turning to cryptocurrency investments, according to a recent Goldman Sachs survey that found close to half of the company’s family office clients are inquisitive about crypto-asset investments. A Goldman Sachs executive further said that a large portion of the company’s family office clients are asking about blockchain and cryptocurrency technologies.
Following the SPAC Boom, Family Offices Target Crypto Investments
A recent report from Bloomberg suggests that the ultra-rich families of the world are interested in blockchain and crypto-asset investing. The report stems from the New York-based multinational investment bank and financial services company Goldman Sachs, which conducted a study that polled over 150 family offices.
The findings suggest high net-worth families are turning to crypto because of “higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.”
A private wealth management executive for Goldman, Meena Flynn, told Bloomberg that a lion’s share of the families want to discuss “blockchain and digital ledger technology” and alongside this, that family offices believe “this technology is going to be as impactful as the internet has been from an efficiency and productivity perspective.”
Out of the polled respondents who think the macroeconomic developments and higher inflation is an issue, 45% are inquisitive about crypto assets to hedge against these problems.
Crypto Industry Sees an Uptick in Family Office Participation
According to Goldman, 22% of the family offices that responded manage $5 billion, while asset managers with $1 billion to $4.9 billion represented 45% of the polled participants. Furthermore, the Goldman survey shows that out of all polled, 15% of respondents have already invested in cryptocurrency and blockchain products.
While some are curious about investing in cryptocurrencies, Goldman’s survey also noted that some respondents have concerns. One of the biggest concerns being whether or not crypto assets have long-term staying power.
Goldman’s survey also noted that while many of the investors are investing in real estate and equities, a great portion of these family offices are participating in special purpose acquisition company investments, otherwise known as SPACs. Family offices were also very interested in cryptocurrency investments during the bull run of 2017 as well.
This year, Fidelity Investment’s crypto subsidiary Fidelity Digital Assets has seen an uptick in family office participation. Tom Jessop, president of Fidelity Digital Assets, recently explained the company noticed institutional investors and high net-worth offices have accelerated demand for ethereum (ETH).