32% of Family Offices invest in crypto

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Some family offices are deciding they are less interested in cryptocurrency as an investment, according to a new report. But they will sooner or later use their dry powder when the right opportunities arise. Which assets will they choose?

Only 32% of family offices currently invest in digital assets, according to a new report from Goldman Sachs. And the percentage that specifically invests in crypto is a bit smaller, just 26%.

Data from Goldman Sachs

The report, “Eyes on the Horizon: Family Office Investment Insights,” presents mixed findings. There are grounds for optimism and pessimism here about the wider adoption of crypto. Some are rushing to embrace digital assets, while others are getting tougher in their skepticism.

“Within the digital asset ecosystem, family offices have become more decisive when it comes to cryptocurrencies,” the report states. “The proportion invested has increased from 16% in 2021 to 26%. However, the proportion of those who are not invested and not interested in the future has increased from 39% to 62%.

The report adds another sobering statistic. Family offices that say they might consider crypto investments in the future represent just 12% of the total, down from 45% in 2021.

Methodology

The bank surveyed 166 decision makers in family offices to generate insight. Of the respondents, 95 were from the Americas, 34 from Europe and the Middle East, and 37 from the Asia-Pacific region. The report revealed a range of interests and motivations on the part of those investing in digital assets.

Source: Goldman Sachs

Opinions on the usefulness and value of these assets vary widely, the report makes clear.

But there is little doubt, based on this report, that traditional asset classes are still popular among allocators. He finds that family offices place a large portion of their investments in assets such as private equity, real estate, infrastructure, hedge funds and private credit. Together, they represent 44% of their holdings.

In addition, family offices kept their asset allocation relatively stable. According to the survey, cash accounts for 12% of their portfolios. A number generally higher than for the other groups. However, 35% of family offices plan to invest this money next year as opportunities arise.

The report says family offices are waiting for the right time to invest their money due to the uncertainty in the economy.

The public is still wary of crypto

The report’s findings present a microcosm of broader skepticism. Interest in digital currencies generally varies across the world. According to Google Trends, Bitcoin encountered a general decline in interest starting in 2021. Although things are looking up in 2023. The currency has remained relatively stable since the start of this year.

The general public is also more suspicious of cryptoassets since 2022. Most Americans who have heard of cryptocurrencies are not confident in their security and reliability, according to a March 13-19 survey. from the Pew Research Center.

Of the 88% who have heard at least a little about cryptocurrencies, 75% say they lack confidence in current ways to invest, trade or use them.

The concern is more prevalent among adults aged 50 and over (85%) than among younger age groups (66%). Only a small percentage of adults are extremely or very confident about cryptocurrencies.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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