In a strategic shift driven by geopolitical tensions and market volatility, Asia’s billionaires are pulling back from U.S. dollar holdings and redirecting their investments toward Bitcoin, gold, and Chinese assets, according to UBS executive Amy Lo.
During a Bloomberg event in Hong Kong, Lo emphasized the importance of this transition as Asia’s wealth management sector, valued at $20.7 trillion in 2024, is expected to grow to $37 trillion by 2029. UBS, which manages $678 billion in Asian assets, reveals that its clients are increasing their exposure to digital assets, indicating a broader trend of diversification.
Rising Trust in Crypto and Gold as Safe-Haven Assets
A 2024 Aspen Digital report reveals that 76% of Asia’s wealthy investors now hold digital assets, up from 58% in 2022. This shift marks a significant departure from traditional dollar-denominated investments as investors seek alternatives to hedge against economic uncertainty.
- Singapore has emerged as a key hub, with 57% of investors planning to increase their crypto allocations.
- Meanwhile, allocations to Bitcoin and gold have increased from 5% to over 15%, underscoring their growing appeal as safe-haven assets.
This trend aligns with the region’s rising adoption of digital asset management tools and AI-driven investment strategies, as financial advisors pivot to more modern, decentralized asset classes.
Impact of U.S.-China Tariff Détente on Investment Strategies
The recent trade agreement between the U.S. and China, announced on May 12, 2025, has further reshaped investor sentiment. The U.S. reduced tariffs from 145% to 30%, while China lowered its duties from 125% to 10%, a move seen as a significant step toward restoring global trade stability.
- As a result, investors are reassessing their exposure to Chinese markets, particularly in sectors like technology, renewable energy, and consumer goods.
- According to Christina Au-Yeung, head of investment management at Morgan Stanley Private Wealth Asia, “We’re witnessing renewed interest in China’s market, especially in areas previously hit by high tariffs.”
Institutional Push into Gold and Bitcoin
Meanwhile, gold prices have surged 25% since January, establishing it as a key asset for portfolio stabilization amid global economic uncertainty. Bitcoin has also gained traction, evolving from a speculative asset to a recognized digital store of value.
- Jay Jacobs from BlackRock notes that several countries are actively diversifying away from U.S. dollar reserves, opting for gold and Bitcoin instead.
- IMF data further reveals a decline in dollar reserves to 57.4%, while Asian central banks increased their gold reserves by 23% since 2021.
Looking Forward: Is the U.S. Dollar Losing Its Dominance?
The increasing shift toward alternative assets and Chinese markets signals a broader trend of de-dollarization in Asia’s wealth management industry. While the U.S.-China trade agreement may offer temporary relief, investors appear to be positioning themselves for long-term structural changes, focusing on assets that offer both growth and protection against economic uncertainty.
