A survey by large investment bank Goldman Sachs found that nearly half of its family office clients want to add cryptocurrency to their portfolios, signaling that the ultra-rich are increasingly bullish on the digital assets.
The survey, reported by Bloomberg, surveyed more than 150 family offices around the world and found that 15% are already exposed to crypto assets.
45% of additional bureaus expressed interest in investing in the asset class as a hedge against “higher inflation, prolonged low rates and other macroeconomic developments after a year of unprecedented global monetary and fiscal stimulus.”
However, other respondents cited concerns about the long-term volatility and uncertainty surrounding the price of cryptocurrencies as the reason for their aversion to the asset class.
About 67% of companies surveyed manage more than $ 1 billion in assets, and 22% of respondents have assets under management in excess of $ 5 billion.
Bloomberg describes the business of family offices as managing “the wealth and personal affairs of rich people,” including Microsoft co-founder Bill Gates, former Google CEO Eric Schmidt and Chanel owners Alain and Gerard Wertheimer .
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Professional services firm Ernst & Young estimates that there are more than 10,000 family offices, each of which handles the financial affairs of a single family, half of which were started in the 21st century. The family office industry is estimated to manage over $ 6 trillion globally, eclipsing the hedge fund industry.
Meena Flynn of Goldman Sachs says most of the company’s family office clients have expressed interest in the “digital asset ecosystem,” adding that many clients believe blockchain technology “is going to have as much of an impact as it is. ‘Internet has been in terms of efficiency and productivity prospect. “