Swiss lender UBS, which manages over $1 trillion in assets, said wealthy clients have begun allocating up to 5% of their portfolios to crypto as a way to hedge against inflation and currency volatility.
According to the Swiss bank’s 2025 Global Investment Returns Yearbook, affluent investors are diversifying beyond traditional assets by investing in Bitcoin (BTC) and alternative cryptocurrencies.
Shifting portfolio strategies
The report highlighted how crypto has evolved from a fringe asset into a recognized component of modern portfolio construction, particularly as long-term concerns mount around the US dollar and other fiat currencies.
The 2025 Yearbook noted that traditional diversification models, once reliant on real estate, commodities, and global equities, are being rethought in response to structural inflation and increased systemic risk.
Digital assets are gaining attention for their low correlation to legacy markets and their potential to act as buffers against macroeconomic shocks.
The analysis echoes comments made by Bitwise CIO Matt Hougan, who recently highlighted that institutional and high-net-worth investors increasingly view crypto as a macro hedge. Hougan similarly said that these investors are starting to increase their allocations to crypto from 1% to up to 5%.
Generational split
UBS data shows a clear generational divide in how clients approach crypto. Younger investors, primarily those under 50, are significantly more likely to incorporate digital assets into their core holdings.
Many view cryptocurrencies not just as a hedge, but as a bet on the future of financial infrastructure, driven by advancements in blockchain, tokenization, and decentralized applications.
These investors are also more comfortable with volatility and more receptive to emerging technology sectors. For them, crypto fits naturally alongside venture capital and tech exposure in portfolios designed for long-term growth.
In contrast, older clients tend to approach crypto with greater caution, often limiting exposure to small, controlled allocations through regulated products or tokenized versions of traditional financial instruments.
For these investors, crypto serves a complementary role, similar to gold, insurance against systemic tail risks, rather than a primary growth engine.
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