US investment bank Goldman Sachs recently conducted a survey on the institutional adoption of cryptocurrencies. They have asked some of the largest asset managers and other financial institutions about their views on crypto. Out the research It appears that insurers around the world are slowly starting to embrace the crypto industry.
Goldman Sachs crypto survey
Although interest from insurance companies is still very small at the moment, a clear growth is visible. Increasingly, these institutions see the crypto sector as legitimate and at least worth considering.
This trend is particularly visible in the United States. 11% of all insurers have already invested in this cryptocurrencies† In Asia this percentage is only 6%. Europe is at the bottom of the list. Here, only 1% of all insurers have already invested in one or more cryptocurrencies such as bitcoin (BTC).
“The vast majority of insurers are not considering investing in cryptocurrencies. US insurers are slightly more interested, with 11% currently investing or considering investing in cryptocurrencies, compared to Asian insurers at 6%, and European insurers at 1%. However, this level of interest is still remarkable,”
In the Goldman Sachs Asset Management Insurance Survey 2022 more than 300 CIOs and CFOs of leading insurers were surveyed. These executives collectively represented more than $13 trillion in assets on the balance sheet. This is about half the value of the global insurance industry.
Institutional adoption of bitcoin
An executive at Goldman Sachs, Mathew McDermott, was somewhat surprised by the outcome of the investigation. According to him, the results clearly show that the crypto industry is becoming more mature.
“As the crypto market matures, coupled with growing regulatory certainty, a cross-section of institutions is gaining confidence to explore investment opportunities, as well as recognize the disruptive impact of the underlying blockchain technology. I have been positively surprised by the increasing adoption by global Asset Managers, who clearly see the potential of this market.”