According to a recent survey conducted by Goldman Sachs, more family offices are showing disinterest in cryptocurrencies than they were two years ago.
Family offices are typically wealth management firms that work with high net worth individuals and families. Conducted in January and February, the survey gathered responses from 166 family offices around the world.
Some 26 percent of family offices are investing in cryptocurrencies, up from 16 percent in 2021, according to the findings.
However, the number of respondents who do not invest in cryptocurrencies and have no future interest in entering the space has increased significantly, from 39% two years ago to 62%. Over the same period, the percentage of respondents who were “likely interested” in this asset class fell from 45% to 12%.
The survey also revealed that family offices in the Asia-Pacific region (APAC) are investing in cryptocurrencies at a higher rate of 30%, slightly higher than similar firms in the Americas or Europe, Middle East and Africa (EMEA). However, the overall trend points to a decline in family office interest in cryptocurrencies.
The report attributes the drop in interest to several factors, including high volatility and regulatory uncertainty surrounding cryptocurrencies.
Survey respondents also cited concerns about cybersecurity and the lack of transparency in the cryptocurrency market.
The Goldman Sachs report highlighted the need for greater clarity and regulation in the cryptocurrency market to attract institutional investors.
The report noted that while many investors are attracted to cryptocurrencies’ potential high returns, they are also wary of the risks associated with the asset class.
The decline in family office interest in cryptocurrencies reflects broader trends among institutional investors. Several large financial institutions, including JPMorgan and Bank of America, have expressed skepticism about cryptocurrencies in recent months.
However, the report also noted that some family offices are still interested in cryptocurrencies and are actively investing.
