The US insurance industry is showing significantly more interest in crypto than its Asian and European counterparts, according to a new survey.
A Goldman Sachs report sheds light on how insurance insiders view crypto. The survey targeted 328 chief investment officers (CIOs) and chief financial officers (CFOs) in the industry, who collectively manage more than $13 trillion in assets.
It is particularly interesting to note that while 11% of American insurers are currently investing or considering investing in crypto, only 6% of Asian insurers and only 1% of European insurers share the same conviction.
Cryptocurrencies ranked fifth in terms of the assets that respondents believed would offer the highest returns over the next 12 months. And cryptocurrencies ranked third when it comes to assets they believe will offer the lowest returns over the next 12 months.
“As the crypto market continues to mature, coupled with growing regulatory certainty, a cross section of institutions are becoming more confident in exploring investment opportunities and recognizing the disruptive impact of the underlying blockchain technology. . I have been positively surprised by the growing adoption by global asset managers, who clearly recognize the potential of this market,” said Mathew McDermott, Global Head of Digital Assets at Goldman Sachs.insurance
Inflation worries the insurance sector
On inflation, which has reached worrying levels in many countries, the vast majority of respondents said it was the biggest risk to their portfolios. Monetary tightening and volatility in credit and equity markets were the next two concerns.
A large number of respondents also believe that the United States will enter a recession in the next two to three years.
The crypto market will no doubt feel some of the effects of these developments as it becomes more tightly coupled with other markets.
Nonetheless, some may see crypto as a way to hedge against macro forces, although it may not be as helpful as they would like.
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