Per a Bloomberg report, around half of the family offices in business with Goldman Sachs want to invest in Bitcoin and cryptocurrencies. The banking giant conducted a survey with participation from around 150 family offices with a global presence.
Data provided by Goldman Sachs revealed that 15% of the participants already have exposure to Bitcoin and other cryptocurrencies. The report claims that many of these firms have been lured in by the recent surges in the top cryptocurrencies.
Bitcoin and Ethereum alone have recorded a 244% and a 725%, respectively. The inflation hedge narrative seems to be the predominant factor-driven the interest of family offices for BTC, ETH, and others. The report claimed:
(…) higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.
22% of the survey’s participants have around $5 billion in assets under management (AUM) or more, 45% have $1 billion up to $4.9 billion.
Alongside Bitcoin, Goldman Sachs found that over 45% of the wealthiest families on the planet are investing in the space race spearheaded by companies such as SpaceX, led by Elon Musk, and Blue Origin, owned by billionaire Jeff Bezos.
Family Offices From Goldman Sachs Survey See Bitcoin As A Revolutionary Asset
Other participants in the Goldman Sachs survey expressed concerns regarding cryptocurrencies and their “long-term” value. Despite Bitcoin’s price rally in the past year, these institutions are worried about the volatility and the price fluctuations.
In addition to Bitcoin as an asset, the investments firm also displayed interest in the “digital asset ecosystem”, blockchain and digital ledger technology, and their potential to be as disruptive as the internet.
In an interview with BloombergTV, Goldman Sachs Global Co-Head of Private Wealth Meena Flynn commented on the survey’s findings. She claims that the interest from family offices is “absolutely there”.
In 2021, when Bitcoin went from $30,000 to $60,000, investors asked a lot of questions, Flynn added.
However, the executive clarified that the 15% of family offices already invested in cryptocurrencies are allocating capital with caution. Around 1% to 3% of their portfolio, according to Flynn.
Data from Bloomberg indicates that family offices have seen a boom in the past years due to “tech billionaires”. These entities usually operate without attracting much attention and control the wealth of billionaires such as Sergey Brin, Jack Ma, Bill Gates, and others.
If the 15% already invested in Bitcoin goes up to half of those firms with interest in cryptocurrencies, the crypto market could receive an unprecedented amount of fresh capital. Additional data from Bloomberg indicates that family offices are valued at around $6 trillion worldwide more than the entire hedge funds industry.
At the time of writing, BTC trades at $32,380 with a 2.4% profit in the daily chart.