Asia’s Wealth Elite Dump USD for Crypto, Gold, and China Plays—UBS Data Exposes the Pivot

Move over, greenback—Asia’s ultra-rich are flipping the script. Fresh UBS data reveals a seismic shift: Bitcoin, gold, and Chinese assets are now the preferred hedges against dollar fatigue.

No more ’king dollar’ worship. The smart money’s chasing decentralized stores of value while Wall Street still peddles T-bills like they’re going out of style (spoiler: they are).

Bonus jab: Guess those ’stablecoin’ evangelists forgot to mention fiat’s losing its crown in the one market that actually matters—private wealth.

Why Asia’s Wealthy Are Betting Against the Dollar

Asia’s richest investors now invest more than 15% of their wealth in cryptocurrencies and gold. This marks a major move away from traditional U.S. dollar investments. The trend shows growing trust in Bitcoin as a reliable asset, similar to how gold gained status during the 2008 financial crisis.

A 2024 study by Aspen Digital revealed that 76% of Asia’s family offices and high-net-worth investors hold digital assets, an increase from 58% in 2022.

Many have boosted their crypto investments from less than 5% to over 10% of their portfolios. Singapore leads the shift, with 57% of wealthy investors planning to add more crypto in the next two years.

Fern spotlight on Asia:

1. Asia represents cryptocurrency’s most diverse and sophisticated market. The region accounts for 60% of the world’s crypto population, with strikingly different patterns across countries in the region. pic.twitter.com/yjmkvHq3Xt

The change reflects a bigger transformation in Asia’s wealth management sector. Digital tools and AI-driven advice are reshaping how money is managed. The region’s affluent class could see their wealth grow from $2.7 trillion in 2021 to $3.5 trillion by 2026, according to another report.

Additionally, the turbulent U.S.-China trade relationship has forced wealthy investors to rethink their plans.

Updated stats:
US tariffs on Chinese exports: 104.3%
Chinese tariffs on US exports: 106.6%

US tariffs on rest of the world exports: 15.7%
Chinese tariffs on rest of the world exports: 6.5%

100% of trade flowing between the world’s two largest countries is subject to tariffs. pic.twitter.com/Xj1G1W7dnC

What started with President Trump’s 2018 trade war grew even tougher during his second term. At their peak, U.S. tariffs hit 145% on Chinese goods, while China fired back with duties up to 125%.

However, a diplomatic breakthrough on May 12, 2025, produced a tariff détente, with the U.S. reducing duties to 30% while China lowered its impositions to 10%.

This partial reconciliation has reignited interest in Chinese markets, particularly in technology, renewable energy, and consumer sectors that had previously suffered under maximum tariff regimes.

“We’re seeing strong new opportunities in China again,” said Christina Au-Yeung, who leads investment management at Morgan Stanley Private Wealth Asia.

Morgan Stanley now advocates a diversified portfolio comprising 40% fixed income, 40% equities, 15% alternatives, and the remainder in liquid assets, reflecting a more risk-calibrated approach among Asia’s affluent investors.

Could China’s Market Rebound Spark a Wider Regional Shift?

Despite persistent economic and geopolitical disparities, Gold has reemerged as a premium asset class, propelling an extraordinary 25% surge in prices since January.

This rally has delivered both substantial returns and portfolio stabilization during turbulent market periods.

Simultaneously, cryptocurrency, particularly Bitcoin, has evolved from a speculative asset to a recognized digital store of value.

Institutional engagement continues to accelerate this transformation, with Jay Jacobs, BlackRock’s Head of Thematics and Active ETFs, observing that numerous nations are actively diversifying away from U.S. dollar reserves toward gold and Bitcoin.

This parallel rise of traditional and digital safe-haven assets coincides with shifting central bank policies across Asia.

Recent IMF data shows the dollar’s share of global foreign exchange reserves has declined to 57.4%, down from 70% two decades ago, while gold reserves among Asian central banks have increased by 23% since 2021.

These macroeconomic shifts provide structural support for the asset reallocation trends observed among retail investors.

Frequently Asked Questions

This is a large sum and marks a structural change, as wealthy investors traditionally held less than 5% in alternatives. Many high-net-worth investors are increasingly moving towards alternative assets like bitcoin and gold.

Emerging markets like Latin America and the Middle East are already testing similar moves.

This is unlikely to happen. The move to diversify into crypto, gold, and other assets is here to stay. This is because recent events have shown how risky it is to rely too much on any single investment.