UBS: Wealthy Investors Increase Crypto Asset Allocation to 5%

Source: Blockchain Knights

UBS, a Swiss credit institution with over $1 trillion in assets under management, said that its high-net-worth clients have begun to allocate up to 5% of their portfolios to Crypto assets as a way to hedge against inflation and currency fluctuations.

According to the Swiss bank's 2025 Global Investment Returns Yearbook, wealthy investors are diversifying beyond traditional assets by investing in BTC and other alternative Crypto assets.

Portfolio Strategy Shift

The report highlights how Crypto assets have evolved from a fringe asset to a recognized component of modern portfolio construction, especially as long-term concerns about the U.S. dollar and other fiat currencies grow.

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

Digital assets are gaining more and more 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 comments from Bitwise Chief Investment Officer Matt Hougan, who recently emphasized that institutional investors and high net worth investors are increasingly looking at Crypto assets as a macro hedge. Hougan similarly said that these investors are beginning to increase their allocation to Crypto assets from 1% to a maximum of 5%.

Generational Differences

UBS data shows a clear generational difference in clients' attitudes toward Crypto assets. Younger investors, primarily those under 50, are more likely to include digital assets in their core portfolios.

Many view Crypto assets not only as a hedge, but also as a bet on the future of financial infrastructure, driven by advances in blockchain, tokenization, and decentralized applications.

These investors have a higher tolerance for volatility and are more willing to embrace emerging technology. For them, Crypto assets fit naturally with venture and tech investments in portfolios designed for long-term growth.

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

For these investors, Crypto assets play a complementary role similar to gold, serving as insurance against systemic tail risks rather than a primary growth engine.