Catenaa, Monday, May 19, 2025-Asia’s richest investors are abandoning the US dollar in favor of Bitcoin, gold and Chinese markets, UBS executive Amy Lo said Tuesday, citing rising geopolitical instability and volatile markets as key factors driving the shift.
Lo, co-head of UBS Asia-Pacific, revealed during a Bloomberg event that more than 15% of ultra-wealthy portfolios in Asia are now allocated to crypto and gold-up from under 5% just years ago. UBS manages $678 billion in regional assets and advises a majority of Asia’s billionaires.
A 2024 Aspen Digital study found 76% of Asia’s family offices and high-net-worth individuals now hold digital assets, compared to 58% in 2022. Singapore is leading the trend, with over half of wealthy investors planning to increase crypto exposure within two years.
The shift coincides with easing U.S.-China trade tensions after a May 12 agreement slashed mutual tariffs, renewing investor interest in Chinese technology, green energy and consumer sectors. Financial firms like Morgan Stanley now recommend more diversified portfolios, blending traditional equities with alternative assets.
Bitcoin’s rise as a hedge asset, alongside gold’s 25% price surge since January, reflects growing distrust of the dollar. Central banks in Asia have also accelerated diversification, increasing gold reserves by 23% since 2021. IMF data shows the dollar’s share of global reserves has dipped to 57.4% from 70% two decades ago.
BlackRock’s Jay Jacobs said nations are actively reallocating reserves into gold and Bitcoin as macroeconomic headwinds challenge dollar dominance.
