Banking giant Goldman Sachs determined in a recent study that 32% of family offices across the world have exposure to digital assets, NFTs or DeFi, while 26% have explicitly invested in cryptocurrencies.
The 2021 research results showed that only 16% of wealth management firms were HODLers.
Two-year difference
Goldman Sachs contacted 166 family offices in the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) to determine how their investment strategy has changed over the past few years.
The 2021 study estimated that 16% of respondents had invested in digital currencies, while current figures have risen to 26%. Nevertheless, interest in the sector has decreased considerably:
“Within the ecosystem of digital assets, family offices have become more decisive on cryptocurrencies: the proportion invested has increased from 16% in 2021 to 26%. However, the proportion which is not invested and which not interested in the future fell from 39% to 62%, and potentially interested in the future fell from 45% to 12%.
Goldman Sachs further revealed that 32% of participants are currently exposed to digital assets (including cryptocurrencies, stablecoins, non-fungible tokens (NFTs), decentralized finance (DeFi) and blockchain-related funds) .
The main motivation of those who entered the ecosystem is the belief in the power of blockchain technology (19%). 9% have joined the industry to diversify their portfolios, while 8% view digital currencies as a store of value. Additionally, 8% bought bitcoins or altcoins, hoping to profit from them in the future or just speculating.
Most HODLers (30%) are from the APAC region. Additionally, 27% of family offices without crypto exposure in this zone remain interested in the future.
EMEA is the opposite, with just 15% cryptocurrency investors and 79% saying they are not intrigued to join the pack.
Hong Kong and Singapore are emerging as leaders
Another recent study conducted by KPMG China and Aspen Digital concluded that nearly 60% of family offices and high net worth individuals (HNWIs) in Hong Kong and Singapore have invested some of their wealth in digital assets.
“For HNWIs and family offices, there’s a real possibility of a big upside, so they can think, why not put 2 or 3% of my portfolio into it and see what happens,” Paul McSheaffrey – Senior Banking Partner at KPMG China – explained.
The research found that the two largest cryptocurrencies by market capitalization – bitcoin (BTC) and ether (ETH) – are the most popular digital assets in both regions.
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