By
Bhushan Akolkar
April 12th, 2024
Goldman Sachs found out that 15% of respondents in a survey of over 150 global family offices are already exposed to the crypto market.
A recent survey conducted by Goldman Sachs Group Inc (NYSE: GS) reveals nearly half of the family offices the bank works with want to add digital assets in their portfolios. Bloomberg reported that Goldman Sachs found out that 15% of respondents in a survey of over 150 global family offices are already exposed to the crypto market.
Additionally, the survey found out that another 45% are much interested in the crypto space as a hedge factor. Some of the key aspects included are higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.
Notably, 22% of the surveyed participants have assets under the management of over $5 billion. Whilst 45% of the participants have assets under management between $4.9 billion and $1 billion.
Over the years, family offices have put a lot of focus on SPACs and global acquisitions. However, the crypto frenzy seems to put all that to a halt as the returns surpass notably. Moreover, more institutional investors including Ark Investment have led in crypto assets adoption.
According to Meena Flynn, who helps lead private wealth management for Goldman Sachs, most family offices are interested in blockchain and digital ledger technology. A clear testimony of surging demand in the Defi market. “There are many who think that this technology is going to be as impactful as the internet has been from an efficiency and productivity perspective,” Flynn noted.
However, the survey noted that there is still a notable number of family offices that are concerned over the long-term value of cryptocurrencies.
Key Notes from Goldman Sachs Recent Survey
Family offices have proliferated in the past decade, more so due to the emergence of tech billionaires. As more investors earn the title of billionaire, the demand for a better store of value over the inflationary market rises over time.
Goldman Sachs partakes in the global investment industry, particularly wealthy investors. Having seen a notable demand for crypto assets from its customers, the bank is more likely to push for more investments like the Grayscale versions.
This comes as the crypto market is relatively trapped in a mini correction and bear market for the past two to three months. However, analysts anticipate a major breakout to another bull market as more money from institutional investors comes in.
The largest digital asset by market capitalization, Bitcoin, was trading around $32,184.20, after adding approximately 4% in the past 24-hours. The entire crypto market cap according to CoinGecko is around $1.357 trillion.