- The digital asset market is seeing increased interest from family offices globally, with a significant 32% engaging in this space, including cryptocurrencies, NFTs, and DeFi, marking an evolution in traditional investment strategies
- The reasons for investing in digital assets vary, with 19% believing in the transformative potential of blockchain, 9% seeking portfolio diversification, and 16% viewing it as a store of value or opportunity for profits
- The APAC region has the highest percentage of HODLers and potential investors, while the EMEA region demonstrates significant resistance, with 79% showing no inclination to join the crypto trend
Analysis by financial giant Goldman Sachs showed an impressive 32% of global family offices are venturing into the digital asset arena. These investments encompass a range of offerings, from cryptocurrencies and NFTs to DeFi, with a specific 26% delving into the realm of cryptocurrencies.
This comprehensive study involved 166 family offices across the Americas, EMEA, and the APAC region. The aim was to understand how their investment strategies have evolved.
The shift from 2021 data, which suggested that only 16% of the surveyed parties were exploring digital currencies, to the current year’s 26% marks a significant increase. Yet, it’s important to note that this surge in investment doesn’t necessarily indicate a growing fascination with the sector.
Goldman Sachs’ investigation also revealed that 32% of the examined groups are presently engaged with digital assets in some capacity. This extends to a wide range from cryptocurrencies and stablecoins to NFTs, DeFi, and funds focused on blockchain technology.
For 19% of those surveyed, the impetus to dive into this ecosystem was their belief in the revolutionary potential of blockchain technology. Another 9% saw it as an opportunity for investment portfolio diversification, while 8% viewed digital currencies as a reliable store of value. An additional 8% showed interest in Bitcoin and various altcoins for potential profit or speculation.
Within the HODLer community, the APAC region flaunts the highest percentage at 30%, with 27% of family offices still needing to invest in crypto, demonstrating curiosity about prospects.
However, the EMEA region displayed a stark contrast, with a mere 15% of cryptocurrency investors and a whopping 79% showing no intentions of hopping onto the crypto trend.
In a separate investigation by Aspen Digital and KPMG China, nearly 60% of family offices and high-net-worth individuals in Hong Kong and Singapore have dedicated a slice of their wealth to digital assets.
Small Businesses Having More Accessibility to Investments
The increased investment in cryptocurrencies by family offices could be attributed to several factors. The transformative potential of blockchain technology, acknowledged by 19% of offices, indicates a forward-thinking approach to technological shifts. Also, the drive for portfolio diversification, with 9% viewing digital assets as a new and dynamic asset class, shows an understanding of market volatility.
The perception of cryptocurrencies as a possible store of value or avenue for profit also plays a role. Moreover, the widespread availability of user-friendly crypto exchange apps has made it much easier for these offices to participate in the crypto market. These factors together suggest a shifting financial landscape.
