The 2023 Family Office Investment Insight Report by Goldman Sachs reveals that the wealthy elites’ interest in crypto wanes, suggesting that last year’s extreme market volatility is to blame for the cooling appetite for digital assets. According to the report, 62% of surveyed family offices are not interested in crypto investments, up from 39% in 2021.
At the same time, more family offices are invested in cryptocurrencies than in 2021 – 26%, up from 16%, with the most-cited rationale being their “belief in the power of blockchain technology.”
Alternative investments, which include private equity, private credit, infrastructure, real estate, and hedge funds, remain a major focus for family offices, with an average total portfolio allocation of 44% versus 20-25% in portfolios of other ultra-high net worth individuals.
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“With the flexibility to invest across the risk spectrum, family offices have maintained a largely consistent approach to more aggressive allocations as they seek superior returns,” Meena Flynn, Co-Head of Global Private Wealth Management and Co-Lead of One Goldman Sachs Family Office Initiative, said in a press release. “Planned risk-on allocations tell us they see strong opportunities to capture added alpha. This patient, strategic, long-term orientation is often an advantage in managing and preserving generational wealth.”
The survey collected responses from 166 family offices across the globe, with 57% based in the Americas, 21% in EMEA, and 22% in APAC. More than 70% of respondents were reported to have a net worth of at least $1 billion, and more than 90% have at least $500 million. The responses were collected in January-February 2023 via an online quantitative survey.