Swiss lender UBS, a leader in wealth management with over $1 trillion in assets under management, has reported a significant shift in investment strategies among its wealthy clients. According to the bank’s 2025 Global Investment Returns Yearbook, affluent investors are increasingly turning to cryptocurrencies as a way to hedge against inflation and currency volatility.
The report highlights a growing trend among high-net-worth individuals to allocate up to 5% of their portfolios to digital assets such as Bitcoin and alternative cryptocurrencies. This marks a departure from traditional investment strategies that focused on real estate, commodities, and equities, as investors seek new sources of diversification in the face of structural inflation and heightened systemic risk.
UBS’s analysis echoes recent comments from industry experts, including Bitwise CIO Matt Hougan, who have observed a growing interest among institutional and high-net-worth investors in using crypto as a macro hedge. Hougan noted that these investors are increasingly looking to increase their crypto allocations, recognizing the low correlation of digital assets to traditional markets and their potential to provide a buffer against economic shocks.
One notable trend highlighted in the report is a generational divide in the adoption of crypto investments. Younger investors, particularly those under 50, are more likely to view cryptocurrencies as a core part of their investment portfolios. These investors see digital assets not only as a hedge but also as a bet on the future of financial infrastructure, driven by blockchain technology and decentralized applications.
Conversely, older clients tend to approach crypto with caution, opting for limited exposure through regulated products or tokenized financial instruments. For these investors, crypto serves as a complementary asset, akin to gold, providing insurance against systemic risks rather than a primary growth engine.
Overall, UBS’s findings underscore the growing acceptance of cryptocurrencies as a legitimate asset class among wealthy investors. As digital assets continue to gain mainstream recognition, their role in modern portfolio construction is likely to expand, offering investors new opportunities for diversification and risk management in an increasingly complex global financial landscape.