Swiss investment bank UBS has revealed that several overseas Chinese family offices—especially those managed by second- and third-generation heirs—plan to allocate about 5% of their portfolios to cryptocurrencies.
This shift highlights a growing acceptance of digital assets among wealthy Asian investors, who are moving from cautious experiments like Bitcoin ETFs to more direct participation in the crypto market.
What’s Driving This Shift?
Generational Influence and Digital Savvy
Younger family office leaders are far more comfortable with technology and digital assets. Their interest is pushing institutions that once viewed crypto as speculative into adopting it as part of broader investment strategies.
Regulatory Developments
Regulation has played a critical role in building confidence:
- The U.S. GENIUS Act has provided more clarity for institutional crypto investments.
- Hong Kong’s new stablecoin framework has further encouraged adoption.
Market Performance and Returns
Strong gains have fueled momentum:
- Bitcoin recently climbed past $124,000, strengthening bullish sentiment.
- NextGen Digital Venture’s crypto equity fund delivered 375% returns in under two years, raising more than $100 million in just a few months.
Sophisticated Investment Approaches
Family offices are maturing in how they approach crypto. Rather than only holding coins or funds, many are turning to advanced strategies such as arbitrage and basis trading to diversify their exposure.
The broader ecosystem is also expanding:
- Hong Kong’s HashKey Exchange recorded an 85% surge in registered users year-over-year by August 2025.
- South Korea’s top three exchanges reported a 17% rise in trading volume and over 20% growth in daily turnover this year.
UBS’ findings show how crypto is evolving from a niche investment into a serious portfolio component for Asia’s wealthy. Backed by younger generations, stronger regulations, and impressive performance, digital assets are gaining traction as a mainstream choice for family offices.
