Swiss Bank UBS Reports Overseas Chinese Wealth Offices Are Allocating 5% into Crypto

• Family offices in Asia are raising crypto allocations with plans to invest up to 5% of portfolios.
• Institutional trading in Hong Kong and South Korea is rising as new ETFs and custody services gain traction.
• Developer activity in Asia is growing fast as more investors explore advanced crypto strategies and tools.

Family offices across Asia are significantly increasing their exposure to digital assets. Several of them plan to allocate up to 5% of their portfolios to cryptocurrencies. The trend is gaining momentum in Singapore, Hong Kong, and mainland China. Wealth managers are fielding more enquiries as interest from high-net-worth individuals grows.

Exchanges in the region are reporting rising trading volumes. New crypto funds are also seeing strong inflows. In Singapore, NextGen Digital Venture raised over $100 million for its new crypto equity fund launched in May. UBS reports that Chinese family offices are behind the shift, with second- and third-generation members driving adoption.

Institutional Trading Gains Ground

Hong Kong and South Korea are leading in institutional activity. HashKey Exchange in Hong Kong saw its user base rise 85% year-on-year by August 2025. South Korea’s top three exchanges reported a 17% rise in trading volumes this year. Average daily turnover has climbed over 20%, according to CryptoQuant. Early in the year, the HashKey Exchange supported Hong Kong’s SFC roadmap as it aligns with its growth strategy.

New ETF approvals are also boosting market activity. Hong Kong approved six spot Bitcoin and Ether ETFs in April 2024. These products are drawing attention from institutions and family offices. In South Korea, regulators are preparing to approve the first spot crypto ETFs. The administration is also working on a won-pegged stablecoin framework.

Shift from Retail to Professional Use

Until recently, cryptocurrency adoption in Asia was primarily driven by retail investors. That pattern is changing. Chainalysis data shows that between mid-2023 and mid-2024, CSAO regions saw $750 billion in inflows. Most transactions were under $10,000 and focused on trading, remittances, and DeFi.

Now, East Asia shows a different trend. Professional and institutional investors are leading the activity. South Korea received $130 billion in crypto over that period. Traders there are using arbitrage and altcoin strategies. In China, wealthy citizens are turning to OTC and P2P platforms as traditional markets struggle.

Developer Growth Supports Expansion

Developer activity in Asia has also surged. The region now accounts for 32% of active crypto developers, up from 12% in 2015. About 41% of new crypto developers come from Asia. This growth supports local innovation and helps family offices pursue more complex investment strategies.

Singapore remains a key hub. Its merchant services processed nearly $1 billion in crypto payments in Q2 2024. Stablecoins are increasingly used in daily retail transactions. Exchanges and wealth firms report rising institutional demand for custody, arbitrage, and structured crypto strategies. Family offices are shifting from passive holdings to more advanced portfolio management.