Asia’s leading wealth managers and family offices are rapidly expanding cryptocurrency allocations as digital assets outperform traditional investments.
Strong returns in 2025 have attracted inquiries from high-net-worth clients, prompting some family offices to target crypto exposures of around 5% of total portfolios. UBS reports that overseas Chinese family offices are among those increasing stakes, while NextGen Digital Venture raised over USD 100 million for a new long–short crypto equity fund after a 375% gain from its predecessor.
Regulatory advances have also bolstered confidence. The U.S. GENIUS Act, enacted in July 2025, and Hong Kong’s stablecoin ordinance effective August 1 have created clear frameworks that encourage institutional participation. Bitcoin’s price surge above USD 124 000 in August has further underscored the asset class’s diversification benefits, with Fidelity noting that bitcoin’s low correlation to equities and bonds provides a hedge against macro uncertainties.
Trading venues and protocols have benefited from the inflows. Hong Kong’s HashKey Exchange saw an 85% year-on-year rise in registered users by mid-2025, while South Korea’s major exchanges report 17% growth in total trading volume year-to-date. Advanced investors are deploying market-neutral strategies such as basis trades across spot and futures, as well as cross-exchange arbitrage. Institutions are also adopting on-chain risk management tools to monitor concentration and liquidity.
Looking ahead, wealth strategists anticipate further maturation of products including regulated ETFs and tokenized fund shares, which may open crypto to broader institutional mandates. As infrastructure and custody services continue improving, Asia’s wealthy are positioning digital assets as core portfolio components rather than speculative sideline plays.
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