Goldman Sachs Survey Reveals Waning Crypto Enthusiasm Among Ultra-Wealthy

Majority of family offices, 62%, have shown disinterest in cryptocurrency investments, as per a recent Goldman Sachs survey. However, the study also revealed that 26% of family offices now hold cryptocurrency investments, an increase from 16% in the previous year.

Ultra-Wealthy Investment Strategies

Goldman Sachs Group’s recently published 2023 Family Office Investment Insight Report highlights the investment preferences of institutional family office clients. Rather than opting for cash holdings, these clients have a “risk-on” approach and plan to allocate more funds to public and private stocks. They also intend to add fixed-income assets to capitalize on rising interest rate opportunities over the next 12 months.

The survey, titled “Eyes on the Horizon,” surveyed 166 institutional family offices between January 17 and February 23, 2023. It revealed that 93% of the participating family offices had a net worth of at least $500 million, with 72% exceeding $1 billion.

According to the report, 41% of the private asset firms surveyed plan to increase their exposure to private equity, while 49% aim to expand their investments in public stocks. Meena Flynn, co-head of Global Private Wealth Management, stated that “family offices, for the most part, have a ‘risk-on’ approach in the next 12 months.”

Cash Holdings Remain Strong

Goldman Sachs analysis indicates that family offices currently maintain higher cash and cash equivalent holdings compared to other institutional investors, with an average allocation of 12%. However, more than a third of respondents plan to decrease their cash allocation in the coming year.

Meena Flynn, the co-head of Global Private Wealth Management, noted that “family offices have adopted a more aggressive approach in pursuit of higher returns” and have the flexibility to invest across various risk profiles.