Goldman Sachs Survey Shows Insurers Are Warming Up To Crypto Investing

June 5, 2022 7:22 pm

A Goldman Sachs global survey was recently conducted and showed that around 11% of insurers are already investing or are interested in getting exposure to the crypto market.

This was the first time that the respondents were surveyed regarding crypto and the expected response was that no one would respond.

As a result, the increased interest indicated a new shift regarding the attention of the industry and could indicate future changes that might be coming.

The report is also showing that crypto is currently considered fifth place for asset class insurers expected to provide the highest amount of returns.

This means that it beats US equities as an asset class which is for the first time ever.

CoinTelegraph reports:

Despite the growing interest, there are still those pessimistic about crypto as 16% said it was an asset class they expected to deliver the lowest returns over the next 12 months.

Overall, crypto was the third-lowest ranked asset class on this measure.

Mathew McDermott, the bank’s global head of digital assets, wrote in the report:

“As the crypto market continues to mature, coupled with growing regulatory certainty, a cross-section of institutions are becoming more confident to explore investment opportunities as well as recognizing the disruptive impact of the underlying blockchain technology.

I have been positively surprised by the rising adoption by global Asset Managers, who clearly recognize the potential of this market.”

To give some impressive numbers, Mass Mutual Insurance Company had invested around $100 million in Bitcoin back in 2020.

Many other insurers are likely to follow suit as the survey cites reasons like inflation and investment uncertainty for reasons why there is increased interest in other asset classes.

The people who participated in the survey included over 300 CIOs and CFOs which represented an extremely large $13 trillion global balance sheet assets.

As a result, this survey can be a pretty good representation of the overall focus for the entire insurer industry.

CryptoPotato reports:

In its latest survey of the insurance sector, Goldman Sachs has, for the first time, included questions related to cryptocurrencies. The replies of top global asset managers show that they’re slowly recognizing crypto assets as investments.

Digital assets fared better than government and agency bonds and cash and short-term instruments, which occupied the first and second positions.

To a question, if the respondents are planning to increase, maintain, or decrease their allocations to the available asset classes, 1% of respondents said they would increase, and 7% said they would maintain their allocations.
One of the key findings of the Goldman insurance survey 2022 is that global assets managers are increasingly finding rising inflation a key concern threatening their portfolios.

Meanwhile, reports suggest that Goldman Sachs has been in talks with crypto exchange FTX to integrate later’s derivatives trading.

The demand for digital assets continues even during the bearish market conditions which are occurring across multiple industries and signals more hidden opportunities for investors.

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