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The financial powerhouse Goldman Sachs found in a recent analysis that 32% of family offices worldwide have some level of engagement with digital assets, NFTs, or DeFi, while 26% have specifically invested in cryptocurrencies.
The findings from the 2021 study indicated that merely 16% of wealth management firms were HODLers.
Two Years Difference
Goldman Sachs reached out to 166 family offices across the Americas, Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC) to assess how their investment strategies have evolved over recent years.
The 2021 study estimated that 16% of respondents had invested in digital currencies, whereas the latest data shows an increase to 26%. However, enthusiasm for the sector has notably declined:
“Within the digital-asset ecosystem, family offices have become more decisive about cryptocurrencies: the proportion that is invested has risen from 16% in 2021 to 26%. However, the proportion that is not invested and not interested in the future has risen from 39% to 62%, and those that are potentially interested in the future has fallen from 45% to 12%.”
Goldman Sachs also disclosed that 32% of the respondents currently have some exposure to digital assets (including cryptocurrencies, stablecoins, non-fungible tokens (NFTs), decentralized finance (DeFi), and blockchain-related funds).
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The main reason for those who have entered the ecosystem is their belief in the potential of blockchain technology (19%). Additionally, 9% have engaged in the industry to diversify their portfolios, while 8% see digital currencies as a store of value. Furthermore, 8% have acquired bitcoin or altcoins, anticipating future profits or engaging in speculation.
Reasons for Investing, Source: Goldman Sachs
The majority of HODLers (30%) are located in the APAC region. Moreover, 27% of family offices without crypto exposure in that area remain interested in the future.
In contrast, the EMEA region shows only 15% of cryptocurrency investors, with 79% expressing no interest in participating.
Hong Kong and Singapore Emerge as Leaders
A separate recent study by KPMG China and Aspen Digital found that nearly 60% of family offices and high-net-worth individuals (HNWIs) in Hong Kong and Singapore have allocated part of their wealth to digital assets.
“For HNWIs and family offices, there is a real possibility of a big upside, so they may think, why not stick 2 or 3 percent of my portfolio in that and see what happens,” Paul McSheaffrey – Senior Banking Partner at KPMG China – explained.
The research indicated that the two largest cryptocurrencies by market capitalization – bitcoin (BTC) and ether (ETH) – are the most favored digital assets in both regions.
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