Crypto Investments Driven by Optimism About Blockchain’s Future

Goldman Sachs’ latest Family Office Investment Insights report revealed that 32% of family offices are currently investing in digital assets.

The report states that family offices are not only investing in cryptocurrencies, but also in blockchain technology. That includes an interest in stablecoins, non-fungible tokens (NFT), decentralized finance (DeFi) and blockchain-focused funds.

Crypto investment interest is declining on an annual basis

The report indicates that family offices are becoming more confident in investing in cryptocurrency. The share of crypto investors has risen from 16% in 2021 to 26%. However, the number of family offices that are not invested in cryptocurrencies and show no interest in the future has increased from 39% to 62%.

Meanwhile, those potentially interested in investing at some point in the future have fallen from 45% to 12%. Family offices have consolidated their opinions on cryptocurrencies, with a larger proportion invested in this asset class. However, there appears to be a shift towards a more polarized view. A growing number of family offices show no interest in investing in cryptocurrencies in the future. This trend indicates that while some investors are increasingly confident in cryptocurrencies, others are still hesitant.

Since major economies such as the US, UK and India have imposed some degree of regulatory limits, a large part of this cynicism may stem from the absence of laws in the sector. The research emphasizes that digital assets are not FDIC insured in the US. This means that they are not guaranteed or sponsored by any government or central bank.

Meanwhile, India has recommended a unified framework for G20 nations to deal with cryptocurrencies. Stolen’s apex bank has maintained an unfavorable position against the asset class.

Blockchain innovations increase crypto interest

According to the global investment data presented in the survey, only 4-5% of investors include cryptocurrencies in their “other” investments. In comparison, over 30% of investors choose public market stocks as their primary investment choice. For both 2021 and 2023, the average asset allocation for respondents from around the world includes investments in cash and cash equivalents and interest-bearing income.

It is interesting to note that 35% of respondents said they would cut their allocation to cash and cash equivalents over the coming year. As well as highlighting new disruptive technologies such as artificial intelligence, machine learning and digital assets, the research also highlights a growing interest in digital consumption due to a change in consumer behaviour. This pattern suggests that investors are more interested in creative investment opportunities for portfolio diversification and increasing returns.

Meanwhile, the report’s findings indicate that family offices are paying close attention to developments in the digital asset sector. Most family offices (19%) are reportedly optimistic about the future of blockchain technology. Of the family offices invested in digital assets, 9% see crypto investments as a means of diversifying their investment portfolios, while 8% see them as a store of value.