According to a recent study by Goldman Sachs, 32% of family offices worldwide have exposure to digital assets, NFTs, or DeFi, while 26% have invested in cryptocurrencies. The study from 2021 estimated that only 16% of the wealth management firms were HODLers.
Two Years Difference
Goldman Sachs contacted 166 family offices in the Americas, Europe, the Middle East, and Africa (EMEA), and Asia-Pacific (APAC) to assess how their investment strategy has changed in the past few years. The study from 2021 estimated that 16% of the respondents have invested in digital currencies, while the current figures have risen to 26%. Nonetheless, interest in the sector has dropped significantly:
“Within the digital-asset ecosystem, family offices have become more decisive about cryptocurrencies: the proportion that is invested has risen from 16% in 2021 to 26%. 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%.”
Goldman Sachs further revealed that 32% of the participants currently have some exposure to digital assets, including cryptocurrencies, stablecoins, non-fungible tokens (NFTs), decentralized finance (DeFi), and blockchain-related funds.
The primary motivation for those who have entered the ecosystem is the belief in the power of blockchain technology (19%). 9% have joined the industry to diversify their portfolios, whereas 8% view digital currencies as a store of value. In addition, 8% have purchased bitcoin or altcoins, hoping to profit in the future or simply speculating.
The majority of HODLers (30%) are from the APAC region. In addition, 27% of the family offices without crypto exposure from that area remain interested in the future.
In contrast, the EMEA region has only 15% cryptocurrency investors, and 79% of them are not interested in joining the pack.
Hong Kong and Singapore Emerge as Leaders
Another recent study by KPMG China and Aspen Digital found that almost 60% of family offices and high-net-worth individuals (HNWIs) from Hong Kong and Singapore have invested in digital assets.
“For HNWIs and family offices, there is a real possibility of a big upside, so they may think, why not stick 2 or 3 percent of my portfolio in that and see what happens,” Paul McSheaffrey – Senior Banking Partner at KPMG China – explained.
The research revealed that the most popular digital assets in both regions are the two largest cryptocurrencies by market capitalization, bitcoin (BTC), and ether (ETH).
