Amid escalating geopolitical tensions and fluctuating markets, Asia’s richest investors are pulling back from the U.S. dollar and reallocating assets into Bitcoin, gold, and Chinese markets, as revealed by UBS executive Amy Lo during a Bloomberg event in Hong Kong.

With Asia’s wealth management sector projected to expand from $20.7 trillion in 2024 to $37 trillion by 2029, UBS, managing $678 billion in Asian assets, is witnessing a pronounced pivot towards digital assets and precious metals.

Why Bitcoin and Gold Are Gaining Traction Among Asia’s Elite

According to a 2024 Aspen Digital study, 76% of wealthy investors in Asia now hold digital assets, a sharp rise from 58% in 2022.

• In Singapore, 57% of investors plan to increase crypto holdings, driven by concerns over U.S.-China trade tensions and currency instability.
  
• The shift to gold and Bitcoin reflects a growing desire for stable, non-correlated assets that can hedge against economic uncertainty.
  

Lo notes that digital asset management tools and AI-driven strategies are further accelerating this trend, making it easier for investors to integrate these assets into their broader portfolios.

China-U.S. Tariff Agreement Shifts Focus to Chinese Assets

A diplomatic breakthrough between the U.S. and China on May 12, 2025, has altered the investment landscape. The agreement, which saw the U.S. reducing tariffs from 145% to 30% and China lowering its own from 125% to 10%, has sparked renewed interest in Chinese markets.

• Morgan Stanley’s Christina Au-Yeung notes that “Chinese tech and renewable energy sectors are seeing a resurgence in investment interest,” following years of tariff-induced underperformance.
  
• Wealth managers are advising clients to consider a diversified allocation strategy, focusing on sectors positioned to benefit from the trade détente.
  

Rise of Alternative Assets: Crypto and Gold Surge in Popularity

Since January, gold prices have surged 25%, reaffirming its status as a go-to asset during times of economic uncertainty. Bitcoin has similarly gained traction as a digital store of value, driven by institutional interest and broader adoption.

• Jay Jacobs of BlackRock observes that global reserves of U.S. dollars have declined to 57.4%, down from 70% two decades ago.
  
• Meanwhile, Asian central banks have increased their gold reserves by 23% since 2021, aligning with the broader shift toward alternative assets.
  

What This Means for Asia’s Wealth Management Landscape

Asia’s billionaires are not just diversifying their portfolios but are actively rethinking their strategies in response to global economic shifts. The rise of Bitcoin and gold as preferred assets reflects a deeper structural change in how wealth is managed in the region.

• The shift is not only a hedge against dollar volatility but also a strategic move to gain exposure to emerging Chinese markets and next-generation assets like digital currencies.
  
• With global reserves of the U.S. dollar declining, the push toward alternative assets is likely to continue gaining momentum, reshaping the future of wealth management in Asia.