Exploring the Benefits and Risks of Digital Asset Investments for Family Offices: Insights from a Goldman Sachs Report
According to a recent report published by Goldman Sachs titled “Eyes on the Horizon: Family Office Investment Insights,” the percentage of family offices investing in digital assets has remained relatively steady, with 32% currently holding investments in this category. These digital assets include cryptocurrencies, nonfungible tokens (NFTs), decentralized finance (DeFi), and blockchain-focused funds. While the interest in crypto investments was rising last year among family offices, there has been a significant decline in investors’ certainty about the digital assets market in 2023.
When asked about their motivations for investing in digital assets, the majority of respondents (19%) cited a belief in the power of blockchain technology, while only 8% and 9% cited speculation and portfolio diversification, respectively. The proportion of investments in cryptocurrencies among investors interested in digital finance has risen significantly since 2021, from 16% to 26%. However, the interest in potential investments in crypto has crashed this year, with just 12% of investors indicating it, down from 45% in 2021.
The report is based on a survey conducted between January and February 2023 via questionnaires distributed to home offices by email. A total of 166 home offices participated in the survey, with 95 based in the Americas, 34 in Europe and the Middle East, and 37 in the Asia Pacific. The findings indicate that family offices continue to hold a significant interest in digital assets, despite the recent uncertainty in the market.
Goldman Sachs, one of the largest investment banks in the world, has been a top winner during the recent banking crisis, with many investors deciding to rotate their portfolio investments. Goldman Sachs’ money funds have received $52 billion in the biggest monthly volume of inflows since the emergence of the COVID-19 pandemic, representing a 13% growth. This growth in inflows indicates a renewed interest in investment opportunities, including those related to digital assets, among investors worldwide.