Amid rising geopolitical tensions and tightening U.S. monetary policy, wealthy Asian investors are increasingly moving away from dollar-denominated assets in favor of cryptocurrencies, gold, and Chinese stock market investments.
Asian investors are accelerating portfolio diversification by reducing exposure to dollar assets, according to Amy Lo, Co-Head of Wealth Management for the Asia-Pacific region at UBS Global, in an interview with Bloomberg.
Lo highlighted concerns over the sustainability of the U.S. economy, inflationary pressures, and the outlook for rising interest rates as key drivers prompting investors to seek alternative asset classes. She noted that UBS’s affluent Asian clients were actively divesting from dollar holdings, which dominated, and are focusing more on gold, crypto, and Chinese equities, particularly in the technology and consumer sectors.
Since early 2024, UBS analysts observed a significant rise in demand for physical gold and gold-backed ETFs, especially among investors from Hong Kong and Singapore. Regarding cryptocurrencies, Asian investors are viewing BTC and ETH as viable alternatives to traditional assets. UBS reports an increasing share of digital assets in client portfolios, notably among younger investors and family offices. Moreover, clients are investing heavily in companies targeting domestic demand, fueling the global “de-dollarization” trend.
A May 2025 Bank of America survey revealed that global fund managers, for the first time in 19 years, significantly reduced their reliance on the U.S. dollar. According to the survey, cash holdings in portfolios dropped from 4.8% to 4.5% over the past 90 days.
Furthermore, in 2025, approximately 86% of institutional investors surveyed by EY-Parthenon and Coinbase indicated plans to increase their investments in digital assets.
