11% of US insurers are interested in cryptocurrencies
Of the 328 CFOs and CIOs representing about half of the global insurance industry, 6% responded that their insurers’ company have been invested in or is considering investing in crypto.
According to Goldman Sachs’ global survey of 328 CFOs and chief investment officers about their company’s asset allocation and portfolio.
The investment banking giant recently released its annual global insurance investment survey, which includes crypto answers for the first time, and found that 11% of insurers in The United States indicate interest in investing or making an existing investment in cryptocurrencies.
Speaking on the Goldman Sachs podcast on the company’s Exchanges on Tuesday, Mike Siegel, Goldman Sachs’ global head of insurance wealth management said he was surprised to get any results:
“We surveyed for the first time on crypto, which I thought would get no respondents, but I was surprised. A good 6% of the industry respondents indicated that they’re either invested in crypto or considering investing in crypto.”
Insurers in Asia are next, with 6% interested or currently investing, and European insurers only 1%.
The report shows that crypto is in fifth place for asset class insurers expecting the highest returns over the next 12 months, with 6% ranking it as their first choice, beating the US and European stocks.
About 2% of companies say crypto investment currently, and while a small number of companies say investment or interest, Goldman Sachs analysts wrote that this level of interest “remains remarkable.”
Only 1% of the companies surveyed said they would increase their crypto positions in the next 12 months; 7% said they would keep their current position, and 92% said they will not invest in crypto next year.
Despite the growing popularity of the crypto market, there are still pessimists about crypto as 16% said it is the asset class they expect to bring in the lowest returns over the next 12 months. Overall, cryptocurrencies are the third lowest ranked asset class on this metric.
The bank’s global head of digital assets, Mathew McDermott, 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.”
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