Bitcoin News Today: Asia’s Wealth Protectors Embrace Crypto as Mainstream Portfolio Staple

Asian family offices and high-net-worth individuals are significantly increasing their allocation to cryptocurrencies, with some investors aiming to hold up to 5% of their portfolios in digital assets. This trend is being driven by a combination of factors, including strong returns from crypto assets, regulatory clarity in key markets, and growing institutional adoption. Hong Kong’s recent stablecoin legislation and the U.S. passage of the GENIUS Act have further fueled interest, as they provide a clearer legal framework for digital currencies and stablecoins.

NextGen Digital Venture, a Singapore-based firm, recently raised $100 million for its new long-short crypto equity fund, the Next Generation Fund II, within a few months of its launch. Jason Huang, the firm’s founder, attributed this success to the growing appetite among limited partners—many of whom represent family offices and fintech entrepreneurs—for diversified crypto exposure. The fund’s predecessor returned 375% in under two years, demonstrating the potential of well-structured crypto strategies.

UBS China reported that some overseas Chinese family offices are also planning to boost their crypto holdings to approximately 5% of their portfolios. This increase reflects a broader shift in mindset among Asian investors, who are moving from viewing crypto as a niche investment to a core asset in their portfolios. The second and third generations of family office leadership are increasingly engaging with digital assets, according to Lu Zijie, head of wealth management at UBS China.

The recent surge in interest is also reflected in the performance of major crypto exchanges. HashKey Exchange in Hong Kong has seen a 85% year-on-year increase in registered users, and trading volumes across South Korea’s top three exchanges have risen 17% year-to-date. The rise in trading activity indicates growing confidence in crypto as a legitimate asset class, especially among more sophisticated investors who are employing strategies like basis trades and arbitrage to optimize returns.

Bitcoin has been a central driver of this trend, with prices reaching record highs above $124,000 in August 2025. The momentum has been supported by both retail and institutional investors, with ETFs tracking Bitcoin and Ethereum posting significant inflows over the past week. Despite recent volatility, including a pullback to around $113,000, many analysts believe that the long-term bull case for crypto remains intact. Some forecasts, such as those from Bernstein analysts, suggest that Bitcoin could reach as high as $200,000 by mid-2027.

Regulatory developments continue to shape the crypto landscape. Global trade associations and financial institutions, including the Institute of International Finance (IIF), have called for a re-evaluation of the Basel Committee’s prudential standards for crypto exposures, arguing that the current rules are overly conservative and could hinder innovation. A report supported by the IIF highlights the potential of distributed ledger technology (DLT) to enhance capital market efficiency and calls for a risk-based regulatory approach that encourages responsible adoption of tokenization.

The growing adoption of crypto by family offices and institutional investors underscores a broader acceptance of digital assets as part of a diversified portfolio. With favorable regulatory trends and strong market performance, the future of crypto in Asia and globally appears increasingly aligned with traditional asset classes. As investors continue to seek ways to hedge against macroeconomic uncertainties, Bitcoin and other cryptocurrencies are emerging as key tools for portfolio diversification and long-term growth.

Source: [1] Asia's wealthy investors seek more crypto in portfolios (https://www.reuters.com/world/china/asias-wealthy-investors-seek-more-crypto-portfolios-2025-08-21/) [2] Bitcoin could reach $200,000 within 6 months during 'long exhausting bull run' (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html) [3] IIF Letter to BCBS, and supporting report, on re-evaluation of prudential standards for cryptoassets (https://www.iif.com/Publications/ID/6263/IIF-Letter-to-BCBS-and-supporting-report-on-re-evaluation-of-prudential-standards-for-cryptoassets)