Interest In Cryptocurrencies Continues To Increase, Here's The Evidence!

Crypto surveys are on the rise. (photo: Unsplash)

JAKARTA – A survey from the leading US investment firm Goldman Sachs reports that investment companies' interest in crypto assets is starting to increase. Several companies are also considering digital assets as a new form of investment.

Previously, in 2020 the insurance company MassMutual had invested in Bitcoin worth 100 million US dollars. This proves that digital asset adoption has experienced significant growth.

“Most insurance companies don't consider investing in cryptocurrencies. American insurers are slightly more interested, with 11% currently invested in or considering investing in cryptocurrencies, compared to Asian insurers at 6%, and European insurers at 1%. However, this level of interest is still important", according to a report from Goldman Sachs.

Reporting from CryptoPotato, the Goldman Sachs 2022 Asset Management Insurance Survey is themed on inflation, investment uncertainty, increasing yields, and the Social Environment and Governance (ESG). The survey involved 328 CIOs and CFOs, representing more than US$13 trillion in global balance sheet assets, which account for about half of the global insurance industry.

The survey asked respondents to name three asset classes that they think will provide the highest returns in the next 12 months. Six percent of respondents who make up 20 of the individuals surveyed, chose cryptocurrency as the first option, while 9 percent chose an asset class among the top three.

Respondents were then asked to rank the three asset classes that would provide the lowest total returns in 12 months, the number of respondents marking cryptocurrency as the first choice was only 16 percent, and 22 percent placed it among the top three. Digital assets fared better than government and institutional bonds as well as cash and short-term instruments, which took first and second place.

For one question, if respondents plan to increase, maintain, or reduce their allocation to an available asset class, 1 percent of respondents said they would increase, and 7 percent said they would maintain their allocation.

“As the crypto market matures, coupled with growing regulatory certainty, institutions are becoming more confident in exploring investment opportunities and recognizing the disruptive impact of the underlying blockchain technology. I am very surprised by the increasing adoption by global Asset Managers, who clearly recognize the potential of this market", said Goldman Sachs Head of Global Digital Assets, McDermott.

From the survey findings, Goldman Sachs found that a factor in the increasing interest of various companies in digital assets is inflation which is considered the main problem that threatens their portfolios.