UBS reveals wealthy investors increasing crypto allocations to 5%, echoing Bitwise

By: bitcoin ethereum news|2025/05/16 03:30:09
0
Share
copy
Swiss lender UBS, which manages over $1 trillion in assets, said wealthy clients have begun allocating up to 5% of their portfolios to crypto as a way to hedge against inflation and currency volatility. According to the Swiss bank’s 2025 Global Investment Returns Yearbook, affluent investors are diversifying beyond traditional assets by investing in Bitcoin (BTC) and alternative cryptocurrencies. Shifting portfolio strategies The report highlighted how crypto has evolved from a fringe asset into a recognized component of modern portfolio construction, particularly as long-term concerns mount around the US dollar and other fiat currencies. The 2025 Yearbook noted that traditional diversification models, once reliant on real estate, commodities, and global equities, are being rethought in response to structural inflation and increased systemic risk. Digital assets are gaining attention for their low correlation to legacy markets and their potential to act as buffers against macroeconomic shocks. The analysis echoes comments made by Bitwise CIO Matt Hougan, who recently highlighted that institutional and high-net-worth investors increasingly view crypto as a macro hedge. Hougan similarly said that these investors are starting to increase their allocations to crypto from 1% to up to 5%. Generational split UBS data shows a clear generational divide in how clients approach crypto. Younger investors, primarily those under 50, are significantly more likely to incorporate digital assets into their core holdings. Many view cryptocurrencies not just as a hedge, but as a bet on the future of financial infrastructure, driven by advancements in blockchain, tokenization, and decentralized applications. These investors are also more comfortable with volatility and more receptive to emerging technology sectors. For them, crypto fits naturally alongside venture capital and tech exposure in portfolios designed for long-term growth. In contrast, older clients tend to approach crypto with greater caution, often limiting exposure to small, controlled allocations through regulated products or tokenized versions of traditional financial instruments. For these investors, crypto serves a complementary role, similar to gold, insurance against systemic tail risks, rather than a primary growth engine. Source: https://cryptoslate.com/ubs-reveals-wealthy-investors-increasing-crypto-allocations-to-5-echoing-bitwise/

You may also like

Deconstructing the Public Chain Pharos Capital Game: Is a $950 million valuation supported by assets like photovoltaics just a shell transaction under layers of betting?

When a physical industry company injects physical assets into a Layer 1 project, it can easily create a valuation of 950 million dollars by calculating several times the value of the physical assets. Is this kind of capital game too outrageous? Does the crypto market really need such RWAs?

a16z: AI is making everyone 10x more productive, but the true winner has yet to emerge

Institutional AI and Retail AI "Better Integration" is an Inevitable Trend.

Why did the star Web3 project Across Protocol choose to abandon DAO?

The proposal for Across to privatize itself is a rare move, but it comes at a time when the industry is beginning to recognize that DAOs are a difficult organizational structure to operate.

In fact, ETH scaling is a major benefit for L2

ETH has finally admitted defeat—its Rollup-centric roadmap is unworkable, while the monolithic scaling solutions adopted by blockchains like Solana have proven to be correct.

Memories: 10 Key Contributions of the TON Core Team That Few People Knew in the Early Days

Every line of code, every tool we build, every sleepless night spent maintaining the network—these efforts have laid the foundation for TON's development today.

2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?

The 2025 South Korean exchange's new token listing performance is structurally similar to Binance's, with no significant differences.

Popular coins

Latest Crypto News

Read more