UBS: Wealthy investors increase crypto asset allocation to 5%
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UBS: Wealthy investors increase crypto asset allocation to 5%
Wealthy investors are diversifying beyond traditional assets by investing in BTC and other alternative crypto assets.
Navigating Web3 tides with focused insightsSource: cryptoslate
Compiled by: Blockchain Knight
UBS, the Swiss banking institution managing over $1 trillion in assets, stated that its high-net-worth clients have begun allocating up to 5% of their portfolios to crypto assets as a hedge against inflation and currency volatility.
According to UBS's "2025 Global Investment Returns Yearbook," wealthy investors are diversifying beyond traditional assets by investing in BTC and other alternative crypto assets.
Shift in Portfolio Strategy
The report highlights how crypto assets have evolved from a fringe asset into a recognized component of modern portfolio construction, especially amid growing long-term concerns about the U.S. dollar and other fiat currencies.
The 2025 Yearbook notes that traditional diversification strategies—once reliant on real estate, commodities, and global equities—are being reevaluated due to structural inflation and rising systemic risks.
Digital assets are attracting increasing attention due to their low correlation with traditional markets and their potential to act as a buffer during macroeconomic shocks.
This analysis echoes comments from Bitwise Chief Investment Officer Matt Hougan, who recently emphasized that institutional and high-net-worth investors are increasingly viewing crypto assets as a macro hedge. Hougan also noted that these investors are beginning to raise their allocation to crypto assets from 1% to as much as 5%.
Generational Differences
UBS data reveals clear generational differences in client attitudes toward crypto assets. Younger investors, primarily those under 50, are more likely to include digital assets in their core portfolios.
Many view crypto not only as a hedging tool but also as a bet on the future of financial infrastructure, driven by advances in blockchain, tokenization, and decentralized applications.
These investors exhibit higher tolerance for volatility and greater willingness to embrace emerging technologies. For them, crypto assets naturally integrate into portfolios designed for long-term growth, alongside venture capital and technology investments.
In contrast, older clients tend to approach crypto assets more cautiously, typically limiting exposure to small, manageable levels through regulated products or tokenized versions of traditional financial instruments.
For these investors, crypto assets serve a role similar to gold—an insurance against systemic tail risks rather than a primary engine for growth.
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