Asian family offices are significantly increasing their positions in encryption assets! UBS states that Chinese overseas family offices plan to raise their allocation ratio to 5%.

Driven by strong market returns, an improved regulatory environment, and the growing recognition of digital assets as a core part of diversified investment portfolios, wealthy families and their investment institutions in Asia are rapidly increasing their exposure to Crypto Assets. A UBS survey shows that Chinese family offices overseas plan to raise their allocation to crypto assets to 5%, with investment strategies shifting from simple buy-and-hold to more complex operations such as Arbitrage and basis trading. Users at a Hong Kong exchange rose by 85% year-on-year, and trading volume in South Korea increased by 17%, reflecting the accelerating wave of institutional crypto investment in Asia.

[The Asian Family Office Crypto Allocation Significantly Increased]

Asian family offices are investing large amounts of capital into the cryptocurrency market, with Singapore's NextGen Digital Venture raising over $100 million for its new long-short crypto fund within months. Founder Jason Huang noted that the investors mainly consist of family offices and internet/fintech entrepreneurs, who increasingly recognize the important role of digital assets in diversified portfolios. Its first fund achieved a 375% investment return in less than two years, demonstrating the high growth potential of the crypto assets category.

[UBS: Chinese family offices aim for 5% allocation in Crypto Assets]

Major banks have also noticed this trend of growth in configuration. Lu Zijie, head of UBS China Wealth Management, stated that some overseas Chinese family offices plan to increase their exposure to Crypto Assets to about 5% of their portfolios. Many second and third generation members of family offices are beginning to understand and participate in digital asset investments. Bitcoin broke through the 124,000 USD mark this month, the Trump administration is advancing the GENIUS bill to support Crypto Assets, and the legislation on stablecoins in Hong Kong has strengthened regional confidence, collectively driving this surge in investment enthusiasm.

[Investment strategies evolve from exploratory allocation to complex operations]

Wealth managers have noticed a significant shift in the investment mindset of family offices. A few years ago, digital assets were seen as an optional allocation, but now crypto assets are increasingly viewed as an essential component. Zann Kwan, Chief Investment Officer of Revo Digital Family Office in Singapore, stated that last year family offices began to tentatively invest in Bitcoin ETFs and have now started to learn about the differences in directly holding tokens. Singapore wealth management firm Lighthouse Canton revealed that clients are exploring complex strategies such as basis trading and arbitrage, indicating that the maturity of crypto investments is on the rise.

[Crypto Assets as a Hedge Against Macroeconomic Uncertainty]

Fidelity International's Giselle Lai added that Bitcoin is being viewed as a hedge against macro uncertainty, particularly due to its low correlation with stocks and bonds. This shift in perception has led more traditional investment institutions to include Crypto Assets in their asset allocation models as an important means of risk diversification.

[Significant Growth in Exchange Volume]

Crypto exchanges are benefiting from this trend. As of August 2025, a Hong Kong exchange has seen a year-on-year increase of 85% in registered users. The trading volume of South Korea's three major trading platforms has increased by 17% this year, with daily trading amounts rising over 20%. South Korean authorities are lifting restrictions on institutional trading and preparing to approve the country's first spot crypto ETFs. President Lee Jae-myung's government is also developing a stablecoin framework pegged to the Korean won, demonstrating a more open attitude towards digital finance. Last week, Dunamu, the largest cryptocurrency exchange operator in South Korea, launched a new custody service for corporate and institutional clients in response to the growing demand for secure storage solutions following the regulatory green light for virtual asset investments.

[Conclusion]

The accelerated growth of Asian family offices' allocation to Crypto Assets marks the official entry of digital assets into mainstream investment perspectives. From simple Bitcoin ETF allocations to complex Arbitrage strategies, and from tentative investments to a target asset allocation of 5%, high-net-worth families in Asia are fully embracing a new era of Crypto Assets investment. With the regulatory framework becoming increasingly完善 and market infrastructure continuously improving, Asian institutional Crypto investment is expected to maintain a strong growth trend, injecting new vitality into the global digital asset market.