The Goldman Sachs analysis of 2022 gives some insight on how insurance industry insiders see cryptocurrency. The poll was sent to 328 Chief Investment Officers (CIOs) and Chief Financial Officers (CFOs) in the industry. Together, they are in charge of more than $13 trillion in assets.
Even though 11% of American insurers are already investing in cryptocurrency or are thinking about it, only 6% of Asian insurers and 1% of European insurers feel the same way.
Cryptocurrencies placed sixth among the investments examined as having the greatest expected gains in the next 12 months. And cryptocurrency emerged in third place when asked which asset they thought would produce the lowest returns in the next 12 months.
“As the crypto market matures, a diverse range of institutions are becoming more confident in exploring investment possibilities while also understanding the disruptive potential of the underlying blockchain technology.” “I’ve been pleasantly pleased by the growing acceptance of digital assets by global asset managers, who clearly realise the market’s potential,” said Mathew McDermott, Global Head of Digital Assets at Goldman Sachs. insurance
Concerning inflation, which has reached alarming levels in many nations, the clear majority of respondents stated it was the greatest danger to their portfolios. The next two worries were monetary tightening and credit and equity market volatility.
A large number of people polled think there will be a recession in the United States in the next two to three years.
As the crypto market becomes more connected to other markets, it will almost certainly have to deal with some of the effects of these changes.
However, others may see cryptocurrency as a tool to hedge against macroeconomic factors, but it may not be as beneficial as they would want.
