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Goldman Sachs’ family office clients have already purchased digital assets in the amount of 15%.
According to a survey conducted by major investment bank Goldman Sachs, nearly half of its family office clients want to add cryptocurrency to their portfolios, indicating that the ultra-wealthy are becoming more bullish on digital assets.
The survey, reported by Bloomberg, queried more than 150 family offices worldwide and found that 15% are already exposed to crypto assets.
A further 45% of offices expressed interest in investing in the asset class as a hedge against “higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.”
Other respondents, on the other hand, cited concerns about the volatility and long-term uncertainty surrounding the price of cryptocurrencies as reasons for their aversion to the asset class.
Approximately 67 percent of the firms polled manage more than $1 billion in assets, with 22 percent boasting assets under management in excess of $5 billion.
According to Bloomberg, family offices manage “the wealth and personal affairs of rich people,” such as Microsoft co-founder Bill Gates, former Google CEO Eric Schmidt, and Chanel owners Alain and Gerard Wertheimer.
According to professional services firm Ernst & Young, there are more than 10,000 family offices, each of which manages the financial affairs of a single family, half of which were established in the twenty-first century. The global family office sector is estimated to manage more than $6 trillion, dwarfing the hedge fund industry.
According to Meena Flynn of Goldman Sachs, most of the firm’s family office clients are interested in the “digital asset ecosystem,” and many customers believe blockchain technology “will be as impactful as the internet has been from an efficiency and productivity standpoint.”