Cryptos: the interest of the ultra-rich, in free fall?

In recent weeks, user interest in cryptos has certainly increased. This is the case with bitcoin (BTC). This is also the case with memecoins like Shiba Inu. But this interest does not seem to concern all users.

The ultra-rich don’t invest as much in crypto anymore

Interest in cryptos has been building for the past few weeks. However, this dynamic does not seem to concern everyone. Indeed, the enthusiasm of users considered to be ultra-rich seems to be cooling.

This is what shows a Goldman Sachs survey, published this Tuesday, May 9. The latter particularly targeted family offices. These are investment structures managed by wealthy individuals or families.

Between January and February of this year, 166 family offices around the world were involved in the survey. Together, they weigh at least $1 billion, for a net worth of at least $500 million.

Goldman Sachs survey data signals a drastic decline in interest in cryptos. A trend verified by the numbers. These indicate a sharp increase in the share of family offices not wanting to acquire cryptos.

Thus, between 2021 and 2022, their total increased from 39% to 62%. At the same time, the total number of family offices, potentially interested in cryptos, has dropped. Over the same period, the rate for them fell from 45% to 12%.

Why that ?

There is obviously a crisis of confidence with these particular users. Goldman Sachs thinks the wave of crypto firm collapses in the industry may have contributed to this change in tone.

Despite everything, the firm indicates a substantial increase in investments by family offices this year, compared to 2021. While they were around 16% to afford cryptos that year, they are 26% in 2023.

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