UBS: Wealthy investors are increasing their allocation to Crypto assets to 5%

Wealthy investors are diversifying their portfolios beyond traditional assets by investing in BTC and other alternative crypto assets.

Source: cryptoslate

Compiled by: Blockchain Knight

Swiss banking institution UBS, which manages over $1 trillion in assets, has stated that its high-net-worth clients have begun allocating up to 5% of their investment portfolios to the Crypto asset space as a way to hedge against inflation and currency volatility.

According to the "2025 Global Investment Returns Yearbook" published by this Swiss bank, wealthy investors are diversifying their allocations beyond traditional assets by investing in BTC and other alternative Crypto assets.

Portfolio Strategy Shift

The report emphasizes how crypto assets have evolved from a marginal asset to a recognized component in modern portfolio construction, especially in the context of increasing long-term concerns about the US dollar and other fiat currencies.

The "2025 Yearbook" points out that the traditional diversified investment model, which once relied on real estate, commodities, and global stocks, is being re-examined due to structural inflation and increasing systemic risks.

Digital assets are receiving increasing attention due to their low correlation with traditional markets and their potential to act as a buffer in the face of macroeconomic shocks.

This analysis echoes the comments made by Bitwise CIO Matt Hougan. Hougan recently emphasized that institutional investors and high-net-worth individuals are increasingly viewing crypto assets as a macro hedge tool. He also noted that these investors are beginning to increase their allocation to crypto assets from 1% to as much as 5%.

Generational Differences

According to data from UBS, there are significant generational differences in attitudes towards crypto assets among clients. Younger investors, primarily those under the age of 50, are more likely to include digital assets in their core investment portfolios.

Many people not only see crypto assets as a hedging tool, but also bet on the future of financial infrastructure driven by advancements in blockchain, tokenization, and decentralized applications.

These investors have a higher tolerance for volatility and are more willing to embrace emerging technology sectors. For them, crypto assets naturally integrate with venture capital and technology investments in a portfolio designed for long-term growth.

In contrast, older clients tend to be more cautious in their approach to Crypto assets, usually limiting the allocation of Crypto assets to a smaller and more controllable range through regulated products or tokenized versions of traditional financial instruments.

For these investors, crypto assets serve a complementary role similar to gold, acting as insurance against systemic tail risks rather than being the primary engine of growth.