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CoinTelegraph 2025-05-14 09:47:50

Asia’s wealthy shifting from US dollar to crypto, gold, China: UBS

High-net-worth clients across Asia are gradually pivoting away from US dollar-based investments, favoring gold, cryptocurrencies and Chinese assets instead, according to financial services giant UBS Group. “Gold is getting very popular,” Amy Lo, the Swiss bank’s co-head of wealth management for Asia, said during Bloomberg’s New Voices event held in Hong Kong on May 13. She cited rising geopolitical uncertainty and persistent market volatility as primary factors behind the shift. Investors, traditionally concentrated in US-centric assets, are now seeking broader exposure across alternative asset classes, including crypto, commodities and other currencies. Lo said “volatility is definitely here to stay,” prompting clients to rebalance toward perceived safe havens and growth opportunities in new regions. China, after years of muted interest, is also regaining traction among the ultra-wealthy. Lo noted that clients who previously avoided exposure to China are now proactively asking about investment opportunities. Hong Kong’s benchmark index, heavily composed of Chinese companies, has emerged as one of the world’s top performers in 2024, further fueling interest. Hong Kong Stock Market Index. Source: Trading Economics Bank of America’s latest fund manager survey also shows that global fund managers significantly reduced their exposure to the US dollar in May, marking the largest underweight position in 19 years. Related: US Bitcoin reserve vs. gold and oil reserves: How do they compare? US-China tariff truce sparks investor optimism Christina Au-Yeung, head of Investment Management Services at Morgan Stanley Private Wealth Management Asia, told Bloomberg that a recent tariff truce between the US and China has created renewed investor optimism. “We are seeing an emergence of really interesting themes coming back out in China,” she said. Au-Yeung also pointed to a growing risk-aware mindset among Asia’s wealthiest clients. The firm now recommends a balanced portfolio allocation, including 40% fixed income, 40% equities, 15% alternatives, and the remainder in cash or equivalents. On May 11, the US and China announced an agreement to temporarily reduce tariffs on each other’s goods. As per the deal, the US will lower tariffs on Chinese imports from 145% to 30%, while China will reduce duties on American goods from 125% to 10%. Related: Bitcoin acts like ‘store of value that it is’ amid Trump policy chaos: NYDIG Bitcoin viewed as a store of value In a recent note, Galaxy Digital analysts said Bitcoin is increasingly being viewed as a digital store of value, noting growing interest from institutions, exchange-traded funds (ETFs) and even governments. “Bitcoin’s supply and demand dynamics are solidifying its place as a mature digital store of value,” said Ian Kolman, co-portfolio manager at Galaxy. Supporting this view, BlackRock’s head of thematics and active ETFs, Jay Jacobs, noted on April 25 that nations are increasingly diversifying away from US dollar reserves, turning instead to assets like gold — and now, Bitcoin ( BTC ) — as part of a broader shift in reserve strategy. Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets

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