Investment vs interest in crypto assets

The number of “home office” investors looking to buy cryptocurrency has increased over the past year. However, there has been a decrease in certainty regarding the crypto industry and digital assets market in general.

According to a report from Goldman Sachs, nearly one-third of family offices have cryptocurrency and digital assets investments. These include a range of cryptocurrencies like Bitcoin ($BTC) and Ethereum ($ETH), blockchain-based and decentralised finance (DeFI) assets, tokenised investment, and non-fungible tokens (NFTs).

According to the results, nearly 40% of family offices aim to increase their holdings in fixed income over the next year. This could be in response to the potential for higher yields in lower-risk assets. At the same time, most of those who are looking to invest in cryptocurrency and digital assets are putting their interest down to the potential of blockchain. Only 8% considered speculation as the reason and 9% noting portfolio diversity would be the reason to look to crypto.

While investment in cryptocurrency has increased over the last few years, the recorded interest in crypto has plummeted over the last year. According to the report, it rose from 16% to over 25% in the 2021 only to fall to 12% from 45% this year between January and February. The researchers from Goldman Sachs attribute this to an increase in investors while no rise in those interest in buying cryptocurrency if they aren’t holding.

“Within the digital-asset ecosystem, family offices have become more decisive about cryptocurrencies: the proportion that are invested has risen… Opinions on cryptocurrencies seem to have crystallized: a greater proportion of family offices are now invested in cryptocurrencies, but the proportion that are not invested and not interested in investing in the future has grown more.”

The results were taken from home offices across the globe, with the majority from the Americas as well as from Europe, the Middle East, and Asian and Pacific regions.

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