Asia's Wealthy Now 5% Crypto-Allied, Shifting Market Power

Asia’s high-net-worth investors are increasingly allocating a portion of their portfolios to cryptocurrencies, signaling a potential shift from a historically retail-driven market to one influenced by institutional and affluent investor activity. According to recent reports, some Asian family offices and wealthy individuals are considering allocations of around 5% to digital assets, a move that could significantly impact market liquidity and adoption. Reuters reported that this trend is particularly visible in Singapore, Hong Kong, and mainland China, where wealth managers are noting a surge in client inquiries and new crypto products are attracting substantial investment.

This shift is supported by the strong performance of cryptocurrencies and evolving regulatory frameworks. For instance, Jason Huang, founder of NextGen Digital Venture, stated that his company raised over $100 million in a few months for a long-short crypto equity fund. This follows the success of his previous fund, which returned 375% in less than two years. Swiss bank UBS also noted that overseas Chinese family offices are increasing their crypto holdings, with some planning to allocate 5% of their total portfolios to digital assets. Younger generations within family offices are increasingly taking an active role in managing these allocations, suggesting a broader acceptance of crypto as a legitimate asset class.

The regulatory environment is also contributing to the growing confidence in cryptocurrencies. In the United States, the passage of the GENIUS Act has been seen as a step toward clearer oversight, allowing institutional investors to operate under a defined legal framework. In Hong Kong, new stablecoin legislation has strengthened the region’s legal infrastructure for digital assets, while Singapore has introduced regulated crypto fund sandboxes to facilitate secure exposure for high-net-worth individuals. These developments are helping to legitimize crypto as a mainstream investment option.

The impact of this trend is already visible in market activity. Hong Kong’s HashKey Exchange reported an 85% year-on-year increase in registered users by August 2025, while South Korea’s three major exchanges saw a 17% rise in trading volumes in the first half of 2025. Average daily trading volumes on these exchanges climbed by more than 20%, exceeding $2 billion. Fidelity International noted that Bitcoin is increasingly being viewed as a diversification tool, given its low correlation with traditional assets like equities and bonds. This perspective is particularly appealing to investors seeking to hedge against macroeconomic risks.

The broader implications of this shift extend beyond market activity. Collectively, high-net-worth individuals in Asia manage over $10 trillion in assets. Even a modest 5% allocation to crypto could channel up to $500 billion into the asset class, significantly increasing liquidity and market depth. Wealth managers are also adapting to this shift, with some institutions introducing advanced strategies like arbitrage and basis trade tactics to improve returns and manage risk in volatile markets. These developments indicate that crypto is moving from a speculative asset to a more strategic component of diversified portfolios.

Source: [1] Wealthy Asian investors target 5% of portfolios in crypto as ... (https://cointelegraph.com/news/wealthy-asian-investors-target-crypto-adoption-broadens) [2] Asia's Rich Turn to Crypto for Growth (https://dailycoin.com/asia-wealthy-investors-family-offices-invest-crypto-for-growth) [3] Asia's wealthy investors direct liquidity into as Bitcoin ... (https://www.mitrade.com/insights/news/live-news/article-3-1059144-20250821)