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While interest in cryptocurrency investment among home offices has grown over the past year, in 2023, the confidence of such investors in the digital asset market has declined significantly.
According to a May 8 Goldman Sachs report titled “Family Office Investments,” 32% of family offices are currently investing in digital assets. This category includes not only cryptocurrencies, but also non-fungible tokens (NFTs), decentralized finance (DeFi), and blockchain-focused funds.
When explaining their motivations for investing in digital assets, the majority (19%) cited belief in the power of blockchain technology, while only 8% and 9% cited speculation and portfolio diversification, respectively.
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The share of investments in cryptocurrencies among those investors who keep up with digital finance has grown significantly since 2021, from 16% to 26%. However, interest in potential cryptocurrency investments has plummeted this year, with only 12% of investors indicating this, compared to 45% in 2021. As summarized in the report:
“Opinions about cryptocurrencies seem to have crystallized: most family offices now invest in cryptocurrencies, but the share of those who do not invest and are not interested in investing in the future has grown even more.”
The report is based on a survey conducted between January and February 2023 using questionnaires sent by email to the main offices. A total of 166 home offices participated, with 95 in the Americas, 34 in Europe and the Middle East, and 37 in Asia Pacific.
Goldman Sachs was among the first winners during the recent banking crisis, when many investors decided to rotate their portfolio investments. Goldman Sachs cash funds received $52 billion, up 13%, the largest monthly inflow since the outbreak of Covid-19.
