American Insurance firms more Interested in crypto than Asia and Europe

By | June 2, 2022

The American insurance industry is showing far more interest in crypto than its Asian and European counterparts, according to a new survey.

A Goldman Sachs report sheds some light on how insurance insiders perceive crypto. The survey targeted 328 Chief Investment Officers (CIOs) and Chief Financial Officers (CFOs) in the industry, who collectively handle over $13 trillion in assets.

Of particular interest is that while 11% of American insurers are currently invested or considering investing in crypto, only 6% of Asian insurers and just 1% of European insurers share the same belief.

Cryptocurrencies ranked fifth in terms of what assets those surveyed believed would offer the highest returns in the next 12 months. And cryptocurrencies ranked third when it came to what asset they believed would deliver the lowest returns in 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 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,” said Mathew McDermott, Global Head of Digital Assets at Goldman

Inflation worries insurance industry

On the topic of inflation, which has hit worrying levels in many countries, the vast majority of respondents said that it was the biggest risk for their portfolios. Monetary tightening, and credit and equity market volatility were the next two concerns.

A high number of those surveyed 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 those developments, as it becomes more tightly coupled with other markets. 

But still, some may consider crypto as a way to hedge against macroeconomic forces, though it may not be as helpful as they wish.


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