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Wealthy investors pour resources into surprising new asset: 'Huge demand'

"Many second- and third-generation individuals of family offices are starting to … participate."

"Many second- and third-generation individuals of family offices are starting to ... participate."

Photo Credit: iStock

Wealthy investors in Asia are bolstering their portfolios with cryptocurrency assets, encouraged by increasing valuation in the digital market, security improvements, and growing institutional adoption. 

As Reuters reported, many well-off Asian families and entrepreneurs see immense opportunities in investing in crypto and are increasingly seeking advice from wealth managers on the best currencies to buy. "Crypto funds are in huge demand," the outlet stated, with some families looking to increase their crypto holdings to 5% of their portfolios, according to the Swiss financial company UBS.

The sudden growth in trading volume can be at least partially explained by the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act in July. It establishes the first federal system for payment stablecoins, requiring them to be 100% backed by reserves such as cash or treasury securities. 

Hong Kong also recently passed a stablecoin bill, with the first licenses expected to be issued in early 2026. As a result, users of HashKey Exchange, the region's largest licensed virtual asset exchange, increased 85% between August 2024 and 2025. 

Bitcoin is around $114,000, per Coinbase, which is near its all-time high of over $124,000 in mid-August. 

Because of these developments, wealthy Asian families feel more confident about making cryptocurrencies a larger part of their portfolios, or at least hedging them against the devaluation of traditional fiat currencies amid higher-than-average historical global inflation. 

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While the crypto industry is booming, some experts are concerned that it could cause economic instability in the long run. Amanda Fischer, who was a top official in the U.S. Securities and Exchange Commission during the Biden administration, told CBS News that crypto is "highly volatile," though recent regulations should make it a safer investment. 

Along with the financial risks, crypto also poses a threat to the environment, as the industry uses massive amounts of water and electricity, some of which is still powered by fossil fuels. However, some operations have switched to clean energy to power their facilities, and others are using profits to fund renewable energy projects, ocean cleanups, and even recycling programs. 

If you want to invest in, buy, or trade crypto, make sure to research the currency fully and choose those that adopt eco-friendly measures. As demand for sustainable investments grows, it will not only benefit your wallet but the planet as well. 

Digital currencies appear to be the next gold rush, and Asian families and offices are cashing in while they can. 

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It is the future of currency 😎

It will become more mainstream 🤑

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It will fade away completely 🙅

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"Many second- and third-generation individuals of family offices are starting to learn about and participate in virtual currencies," Lu Zijie, head of wealth management at UBS China, said.

Jason Huang, founder of NextGen Digital Venture, told Reuters, "Our investors — mainly family offices and internet/fintech entrepreneurs — recognise the growing role of digital assets in diversified portfolios."

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