A new survey from Goldman Sachs Group Inc GS found that nearly half of its family office clients want to add cryptocurrencies to their investment portfolios.
What Happened: According to a report from Bloomberg, 45% of Goldman’s “ultra-rich” clients sought exposure to the asset class as means to hedge against higher inflation, prolonged low rates, and other macroeconomic developments after a year of “unprecedented global monetary and fiscal stimulus.”
“The majority of families want to talk to us about blockchain and digital ledger technology,” said Meena Flynn, co-head of private wealth management at Goldman.
“There are many who think that this technology is going to be as impactful as the internet has been from an efficiency and productivity perspective.”
Goldman’s private wealth management clients include some of the wealthiest families in the world. Out of the 150 family offices surveyed, 22% had over $5 billion in assets under management, while 45% managed between $1 billion and $4.9 billion.
A research estimate by Campden Wealth in 2019 valued the family office industry at close to $6 trillion, surpassing even the hedge fund industry.
Still, some survey respondents had “underlying concerns” about the long-term value of cryptocurrencies, remaining particularly concerned by the recent volatility surrounding the asset class.
Price Action: At press time, Bitcoin BTC/USD was trading at $32,220, gaining around 4% over the past 24-hours.
The leading digital asset hit an all-time high of $64,800 in May but has since lost 50% of its value.
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