A recent survey by Goldman Sachs' (NYSE: GS) institutional family office investors reveals a significant decline in interest in cryptocurrencies among the wealthy elite, largely due to the extreme market volatility witnessed over the past year.
According to the survey, the percentage of family offices not invested in crypto and uninterested in future investments has risen to 62%, up from 39% in 2021, The Block reported.
Additionally, the portion of those considering future crypto investments has dropped from 45% to 12%.
This change in sentiment comes after high-profile cryptocurrency collapses involving FTX, BlockFi, and Celsius.
However, the survey also shows that more family offices are currently invested in cryptocurrencies than in 2021, with 26% invested today compared to 16% last year.
The primary reason cited for this investment is the "belief in the power of blockchain technology."
The survey collected responses from 166 family offices worldwide, 93% of which have a net worth of at least $500 million and 72% with at least $1 billion.
The survey took place in January and February of this year.
Goldman Sachs' 2021 survey found that nearly half of the family offices it worked with were interested in adding crypto to their investment portfolios, driven by factors such as higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.
However, these investors are now more focused on increasing allocations to public and private equities and adding fixed-income exposure to capture higher rate opportunities.
Meena Flynn, co-head of global private wealth management and co-lead of the One Goldman Sachs Family Office Initiative, stated, "With the flexibility to invest across the risk spectrum, family offices have maintained a largely consistent approach to more aggressive allocations as they seek superior returns."
She added that their "patient, strategic, long-term orientation is often an advantage in managing and preserving generational wealth."