Wealthy Investors Retreating from Crypto, Goldman Sachs Survey Reveals

A survey recently conducted by banking giant Goldman Sachs a marked decline in enthusiasm for cryptocurrencies among wealthy family office investors was observed, an outcome attributed to the tumultuous volatility experienced in the crypto market over the past year.

According to the survey, 62% of family offices not already invested in cryptocurrencies expressed disinterest in doing so in the future. This is a significant increase from 2021’s figure of 39%. Concurrently, the percentage of those contemplating future investments in crypto plunged to 12% from 45%, as reported by The Block.

Despite the cooling interest, the proportion of family offices that currently hold cryptocurrencies has grown since 2021, from 16% to 26%. The predominant reason cited for this was a “belief in the power of blockchain technology.”

The survey polled responses from 166 family offices globally, 93% of which had a net worth of at least $500 million, and 72% with a net worth of $1 billion or more. The data collection took place in January and February of this year.

In the previous survey conducted by Goldman Sachs in 2021, it was found that almost half of the family offices they dealt with were considering including cryptocurrencies in their investment portfolios.

Presently, these investors seem more inclined towards amplifying their exposure to public and private equities and incorporating fixed-income exposure to seize higher rate opportunities.

As CryptoGlobe reported Arthur Hayes, the co-founder of cryptocurrency trading platform BitMEX, has predicted a significant upturn in Bitcoin’s fortunes, regardless of economic uncertainty.

In a blog post, Hayes scrutinized the post-2008 two-tier banking system, warning of a potential expansion in the US money supply should non-“Too Big to Fail” (TBTF) banks falter. He outlined scenarios where TBTF banks assume liabilities of failing non-TBTF banks, leading to an increase in the money supply and subsequently raising the value of Bitcoin.

Despite possible inflation and the Fed’s rate hikes, Hayes argued that Bitcoin and gold are set for gains under any circumstances, unless the banking system is allowed to fail.

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