The traditional wealth management world, once averse to cryptocurrencies, is facing a surge in demand for digital assets from its wealthy clients, particularly in financial hubs like Dubai, Switzerland and Singapore.
This growing pressure is forcing private banks and asset managers to integrate crypto services into their portfolios.
A survey of 3,851 investors and 456 wealth management professionals conducted by Switzerland-based software firm Avaloq during the February-March 2025 period revealed that 39% of high-net-worth individuals in the United Arab Emirates own crypto assets, but only 20% of them invest through a traditional asset manager.
Known for its oil wealth, low-tax structure, and foreign investor-friendly environment, the UAE has become one of the world’s most important crypto centers, particularly thanks to the Virtual Assets Regulatory Authority (VARA), which Dubai established in 2022.
The main reasons for the corporate finance world’s shyness away from crypto are technical risks like high volatility, complex technology, and wallet management. According to Avaloq data, the main concerns of UAE investors who don’t own crypto are market volatility (38%), lack of knowledge (36%), and distrust of exchanges (32%).
With the crypto market rebounding and Bitcoin reaching new record highs, the number of crypto millionaires worldwide has reached 241,700, a 40% increase from last year. According to the Henley & Partners Crypto Wealth Report 2025, the top five countries for digital asset investors are Singapore, Hong Kong, the US, Switzerland, and the UAE.
*This is not investment advice.