Family Offices Bet Big on Crypto as Digital Assets Go Mainstream

Asian family offices are increasingly allocating capital to cryptocurrencies, with investment volumes surging in the region. According to recent reports, firms such as Singapore-based NextGen Digital Venture have raised over $100 million in a few months for new crypto equity vehicles, reflecting a growing acceptance of digital assets as a core component of diversified portfolios [1]. Jason Huang, founder of NextGen, highlighted that the firm's first fund had returned 375% in under two years, reinforcing the appeal of digital assets among institutional investors [1]. The trend is also being supported by major financial institutions, with UBS reporting that some overseas Chinese family offices plan to increase their crypto exposure to around 5% of their holdings [1].

This shift is partly driven by the maturation of the crypto asset class, as well as regulatory developments that are improving the legal and operational framework for digital assets. For instance, South Korea’s Financial Services Commission has ordered exchanges to suspend new lending services against crypto assets to address risks associated with forced liquidations and investor protection [4]. Meanwhile, Hong Kong has introduced stablecoin legislation and tightened custody requirements for crypto trading platforms, signaling a more structured approach to the sector [3]. These regulatory moves have provided increased confidence among investors and have contributed to the rising interest in crypto from traditional wealth management sectors [1].

The growing interest is also evident in the strategies being adopted by family offices, many of whom are moving beyond simple buy-and-hold allocations to explore more sophisticated crypto trading strategies such as arbitrage and basis trades [1]. Zann Kwan, CIO of Singapore-based Revo Digital Family Office, noted that family office investors are now focusing on the distinction between holding a token directly and investing via ETFs, as their understanding of digital assets deepens [1]. The role of Bitcoin as a macroeconomic hedge is also gaining traction, with some observers suggesting that its low correlation with traditional asset classes is making it an attractive portfolio diversifier [1].

The surge in demand has had a direct impact on crypto exchanges, which are experiencing significant growth in user base and trading volumes. HashKey Exchange in Hong Kong reported an 85% year-on-year increase in registered users as of August 2025 [1]. In South Korea, the three largest trading platforms saw a 17% rise in trading volumes during the same period [1]. The regulatory environment, while still evolving, appears to be encouraging institutional adoption, with South Korean authorities preparing to approve the country’s first spot crypto ETFs and exploring a stablecoin framework tied to the Korean won [4]. These developments are expected to further accelerate the integration of crypto into mainstream investment strategies [1].

Industry experts and financial analysts are also weighing in on the long-term implications of this shift. Goldman Sachs has predicted a potential stablecoin gold rush, driven by new U.S. regulations such as the GENIUS Act, which aligns state and federal frameworks for stablecoin issuance [6]. U.S. Treasury Secretary Scott Bessent has highlighted how stablecoins, particularly those backed by U.S. dollars or Treasuries, could boost demand for government bonds and reinforce the dollar's role as the global reserve currency [6]. The potential for stablecoins to expand access to the global economy and support financial infrastructure is being seen as a key driver of growth in the coming years [5].

Source: [1] Asian Family Offices Pour $100M Into Crypto as Demand Surges (https://cryptonews.com/news/asian-family-offices-pour-100m-into-crypto-as-demand-surges/) [2] South Korea orders exchanges to halt crypto lending services (https://cointelegraph.com/news/south-korea-crypto-lending-ban-guidelines) [3] Crypto regulatory affairs: Private sector in US and Hong Kong push for changes in new stablecoin rules (https://www.elliptic.co/blog/crypto-regulatory-affairs-private-sector-in-us-and-hong-kong-push-for-changes-in-new-stablecoin-rules) [4] South Korea Bans New Crypto Lending on Exchanges (https://coinpaper.com/10587/south-korea-halts-crypto-lending-ahead-of-new-regulations) [5] Crypto firms urge UK to form national stablecoin strategy (https://www.cnbc.com/2025/08/20/crypto-uk-stablecoin-strategy.html) [6] Goldman Sachs says we're on the verge of a stablecoin gold rush (https://finance.yahoo.com/news/goldman-sachs-says-verge-stablecoin-104117655.html)