Goldman Sachs: Crypto Investments in Family Offices Rise Despite 2023 Market Slump

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Jaroslaw Adamowski

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Jaroslaw Adamowski

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June 26, 2023 06:55 EDT

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In spite of the ongoing cryptocurrency market downturn, family offices are ramping up their investments in crypto assets, according to a recent report released by U.S. investment bank Goldman Sachs. 

This latest study examines the activities of family offices across the world and the investment strategies they employ. 

The publication shows the perspectives of 166 family office decision-makers from across the globe, combined with its analysts’ collective observations from working with family offices and family-controlled enterprises. 

More than 70% of the respondents have a net worth of at least $1 billion, and more than 90% demonstrate in-house investment management capabilities.

One of the market trends identified by Goldman Sachs’ analysts is a rising share of investments in digital assets in the portfolios of numerous family offices from around the world, the U.S. bank said. 

Family offices increasingly invest in crypto

“Across products, 32% of family offices currently invest in digital assets. Within the digital-asset ecosystem, family offices have become more decisive about cryptocurrencies: the proportion that are invested has risen from 16% in 2021 to 26%,” according to Goldman Sachs. 

“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%,” the report said.

The surveyed family offices invest in a wide range of digital assets, including cryptocurrencies, blockchain technology, stablecoins, non-fungible tokens (NFTs), decentralized finance (DeFi), as well as blockchain-focused funds, as indicated by the latest study. 

“Among those that do, the most common primary rationale is their belief in the power of blockchain. Within the digital- asset ecosystem, opinions on cryptocurrencies seem to have crystallized since our last survey: a greater proportion of family offices are now invested in cryptocurrencies — 26% versus 16% in 2021,” the report said. 

At the same time, 62% of the surveyed family offices declare that they are not invested in the sector and are not interested in investing in the future, compared with 39% in 2021. Only 12% indicated potential future interest, a solid decrease from 45% in 2021, according to the investment bank. 

“Opinions on cryptocurrencies seem to have crystallized: a greater proportion of family offices are now invested in cryptocurrencies, but the proportion that are not invested and not interested in investing in the future has grown more,” Goldman Sachs’ analysts concluded in the report.