Asian Millionaires Dump Dollars for Bitcoin and Gold—Here’s Why
As the dollar’s dominance wobbles, Asia’s elite are making moves. Crypto and gold are now the go-to hedges for high-net-worth investors across the region.
The Great Diversification Play
From Singapore to Seoul, wealth managers report a surge in clients swapping USD reserves for decentralized assets. Bitcoin ETFs? Sold out. Gold vaults? Overflowing.
Bankers Hate This One Trick
Old-guard finance types grumble about ’speculative mania’—while quietly rebalancing their own portfolios. Because nothing says ’stable store of value’ like a 20% monthly BTC swing.
The trend cuts deep: even traditionally conservative family offices now hold 15-20% in crypto. Meanwhile, Goldman Sachs just launched another ’groundbreaking’ gold fund—only 5,000 years late to the party.
High-net-worth clients in Asia are increasingly diversifying their portfolios away from traditional US dollar assets and turning towards alternative investments like cryptocurrencies, gold, and Chinese assets, according to a recent statement by Amy Lo, UBS co-head of Asia-Pacific and head of UBS Hong Kong, and chairman, Global Wealth Management Asia.
Her comments, made during a Bloomberg New Voices event in Hong Kong on Tuesday and reported by Chinese news outlet Cailianshe, highlight a potential shift in asset allocation driven by geopolitical tensions and a growing appetite for diversification among the wealthy.
Lo pointed specifically to the ongoing trade tensions between China and the United States as a key factor prompting this change in investment preferences. For a client base whose portfolios were historically "quite US-centric," the current geopolitical climate is spurring a search for alternative currency assets and a broader diversification strategy.
"Gold is very popular now," Lo noted, reflecting a classic flight-to-safety sentiment often seen during periods of economic and political uncertainty. However, she also emphasized a significant uptick in interest towards both commodities and cryptocurrencies as part of this diversification trend. This suggests that wealthy investors in the region are increasingly viewing digital assets not just as speculative plays, but as a legitimate asset class worthy of allocation within their broader investment strategies.
Lo’s remarks underscore the evolving perception of cryptocurrencies within sophisticated investment circles. Once often relegated to the fringes of traditional finance, digital assets like Bitcoin and ethereum are gaining traction as potential hedges against currency fluctuations and as sources of uncorrelated returns. The inclusion of cryptocurrencies alongside established safe havens like gold in the diversification strategies of UBS’s wealthy Asian clients signals a maturing market and a growing comfort level with digital assets among high-net-worth individuals.
The shift also reflects the increasing prominence of Chinese assets within global investment portfolios. As China’s economy continues to grow and its financial markets deepen, wealthy investors in the region are naturally seeking greater exposure to domestic opportunities.
Lo also cautioned that "volatility will definitely continue," acknowledging the inherent fluctuations in the markets, particularly within the cryptocurrency space. This suggests that while wealthy clients are showing increased interest in these alternative assets, they are likely doing so with an awareness of the associated risks and a focus on long-term diversification rather than short-term speculation.
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Blockcast
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Blockcast is hosted by Head of APAC at Ledger, Takatoshi Shibayama. Previous episodes of Blockcast can be found here, with guests like Nic Young (Oh), Jacob Phillips (Lombard), Chris Yu (SignalPlus), Kathy Zhu (Mezo), Jess Zeng (Mantle), Samar Sen (Talos), Jason Choi (Tangent), Lasanka Perera (Independent Reserve), Mark Rydon (Aethir), Luca Prosperi (M^0), Charles Hoskinson (Cardano), and Yat Siu (Animoca Brands) on our recent shows.
