Cryptocurrencies: Are ultrarich people losing interest in it?

In recent weeks, interest in cryptocurrencies has certainly increased among users. This includes Bitcoin (BTC). Memecoins like Shiba Inu are concerned too. However, this interest doesn’t seem to be shared by all users.

Ultrarich people aren’t investing as much in cryptocurrencies anymore

While interest in cryptocurrencies has been increasing in recent weeks, this trend doesn’t seem to be shared by everyone. In fact, the enthusiasm of users considered to be ultrarich seems to be cooling off.

This is what a survey by Goldman Sachs, published on Tuesday, May 9th, reveals. The survey specifically targeted family offices, which are investment structures managed by wealthy individuals or families.

Between January and February of this year, the survey targeted 166 family offices worldwide. Which together have a minimum worth of $1 billion, with a net worth of at least $500 million. 

Goldman Sachs finds crypto interest has waned among the ultra-rich https://t.co/wmL25Ukbq1

— The Block (@TheBlock__) May 9, 2023

The survey data shows a drastic decrease in interest among family offices for cryptocurrencies. The numbers confirm this trend. There is a sharp increase in the number of family offices not interested in acquiring cryptocurrencies.

Between 2021 and 2022, the total number of family offices not interested in cryptocurrencies increased from 39% to 62%. While the total number of family offices potentially interested in cryptocurrencies dropped from 45% to 12%.

What’s the reason behind this? 

There’s obviously a confidence crisis among these particular users. Goldman Sachs believes that the wave of crypto firm collapses in the industry may have contributed to this tone change.

Despite this, the firm reports a substantial increase in family offices’ investments in cryptocurrencies this year compared to 2021. While only 16% of family offices purchased cryptocurrencies in 2021, that number has risen to 26% in 2023.

Meena Flynn, co-head of global private wealth management at Goldman Sachs, sees this as a “patient, strategic, and long-term approach” that would be relevant “in the management and preservation of generational wealth.”