- UBS confirms affluent clients are putting up to 5% of assets into crypto for diversification.
- UBS’s 2025 Yearbook identifies crypto as a hedge against inflation and currency volatility.
- Tokenization efforts like UBS Tokenize enable crypto exposure in regulated environments.
UBS, a leading global wealth manager with over $1 trillion in assets, reports that its affluent clients are diversifying their portfolios by allocating up to 5% of their total assets into cryptocurrencies. This move reflects a broader trend among wealthy investors seeking alternatives to traditional fiat currencies, particularly as concerns grow around the US dollar.
UBS 2025 Yearbook: Why Wealthy Investors Are Turning to Crypto
The shift towards digital assets is part of a broader risk mitigation strategy, as UBS’s 2025 Global Investment Returns Yearbook emphasizes. With rising inflation and persistent volatility in fiat currencies, particularly the U.S. dollar, investors are looking for assets with low correlation to traditional markets. Cryptocurrency, once considered speculative, is now viewed as a tool for portfolio diversification. The UBS report notes that exposure to alternative asset classes such as crypto can help cushion portfolios against inflation shocks and currency devaluation.
UBS highlights how the structure of modern portfolios has evolved. Traditionally, diversification involved spreading risk across geographies and sectors. However, today’s economic climate demands more. The inclusion of cryptocurrencies reflects the growing demand for assets that offer asymmetric return potential and act as hedges against systemic risk. In previous years, UBS used to focus more on real estate and commodities as non-correlated assets. Now, digital assets have clearly entered that list, showing measurable traction in high-net-worth investment strategies.
Although UBS remains cautious about direct crypto trading for its clientele, the bank encourages strategic, limited exposure through regulated vehicles or indirect means such as tokenized financial instruments. The UBS 2025 Yearbook also points to generational differences in cryptocurrency investment.
Younger wealthy investors are more likely to allocate capital into blockchain technologies, treating crypto not just as a hedge but as a long-term growth sector. UBS uses this insight to guide wealth planning, suggesting that crypto’s inclusion in a diversified portfolio is no longer fringe—it’s becoming normalized.
Evolving Perspectives: Zero Crypto Exposure Now “Far More Riskier”
Legal expert John E. Deaton emphasizes the changing risk landscape, stating,
“We have officially reached the point where it is far more riskier to have zero exposure to crypto than it is to allocate a small percentage of your net worth to it.”
This powerful statement from John Deaton on the crypto risk perspective reflects the increasing inclusion of cryptocurrencies in diversified investment portfolios by traditional financial institutions.While UBS has historically been cautious regarding direct cryptocurrency investments, the bank has launched initiatives like UBS Tokenize, focusing on the tokenization of traditional financial instruments such as bonds and funds. This approach allows clients to engage with digital assets within a regulated framework, aligning with UBS’s commitment to compliance and risk management.
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