Wealthy Asians Shift Portfolios Toward Crypto as Institutional Interest Booms

Wealthy Asian investors are increasingly allocating a portion of their assets to cryptocurrency, with some targeting 5% of their portfolios in the asset class. This trend has gained traction across financial hubs like Singapore, China Hong Kong, and mainland China, where family offices and high-net-worth individuals are showing growing interest in digital assets. According to reports, this shift is being driven not just by retail activity but by professional and institutional investors seeking exposure to crypto as a store of value or as a hedge against macroeconomic uncertainties. UBS highlighted the involvement of overseas Chinese family offices, noting that second- and third-generation members are becoming more engaged in understanding and investing in digital assets.

Wealth management firms in the region have reported a surge in inquiries from high-net-worth clients, with cryptocurrency exchanges noting increased trading volumes and the successful launch of new crypto funds. For instance, Jason Huang, founder of NextGen Digital Venture, raised over $100 million in a few months for a long-short crypto equity fund in Singapore. His previous fund returned an impressive 375% in under two years, illustrating the potential returns attracting institutional interest.

Exchange activity across Asia has also seen notable growth. HashKey Exchange in China Hong Kong reported an 85% year-on-year increase in registered users by August 2025. Similarly, South Korea’s major exchanges recorded a 17% rise in trading volumes year-to-date, with average daily volumes up by over 20%. These figures suggest that institutional and high-net-worth investors are beginning to shift their capital into digital assets, complementing the previously retail-driven adoption trends in the region.

According to the 2024 Global Crypto Adoption Index from Chainalysis, India, Indonesia, Vietnam, and the Philippines remain key markets for crypto adoption. However, in East Asia, the trend has shifted toward more professional and institutional activity. South Korea, for example, received $130 billion in crypto inflows, driven largely by altcoin and stablecoin trading, while China Hong Kong saw an 85.6% year-on-year increase in crypto activity. The approval of Bitcoin and Ethereum ETFs in the region has further encouraged institutional investment, contributing to a broader shift in portfolio allocations.

In China, crypto activity has moved toward over-the-counter (OTC) and peer-to-peer (P2P) platforms since the 2021 exchange crackdown. Despite regulatory challenges, wealthy individuals have increasingly used digital assets to preserve and transfer wealth, especially as traditional asset classes like real estate and equities have faced volatility. The region’s growing crypto developer base, which now accounts for 32% of global active developers, also signals a shift toward innovation and infrastructure development in the digital asset space.

Meanwhile, global financial institutions are pushing for a reassessment of regulatory frameworks governing crypto assets. A coalition of trade associations, including the Institute of International Finance and the International Swaps & Derivatives Association, has urged the Basel Committee on Banking Supervision to pause the implementation of stringent capital requirements for crypto exposures. These rules, which include steep surcharges for holding digital assets, were agreed upon in 2022 but are now being challenged as overly burdensome and counterproductive to innovation. The industry argues for a risk-based, technology-neutral approach that would enable responsible crypto adoption without stifling innovation or pushing activity outside regulated systems.

Source: [1] Wealthy Asian investors target crypto adoption broadens (https://cointelegraph.com/news/wealthy-asian-investors-target-crypto-adoption-broadens) [2] Finance Industry Seeks Overhaul of Global Crypto Rules (https://www.bloomberg.com/news/articles/2025-08-19/finance-industry-seeks-overhaul-of-global-crypto-rules-for-banks) [3] Global Trade Associations Call for Revisions to EU Cryptoasset Standard (https://www.bankingexchange.com/news-feed/item/10393-global-trade-associations-call-for-revisions-to-eu-cryptoasset-standard) [4] 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)