Everyone loves gold in Asia, as Eugene Ng, founder of Vision Capital Fund, recently pointed out, highlighting a cultural truth that has shaped investment habits across the region for ages. Thus, it’s no surprise that Bitcoin, also referred to as “digital gold” or “gold 2.0”, has gained so much traction among Asian investors, managing to reshape portfolio strategies and put centuries-old investment habits to the test.
Asian investors have been among the quickest to learn how to Bitcoin and experiment with the rest of the crypto and blockchain products that pervade the financial realm. Now, the tech evolution has progressed so far that around 47% of Zoomers, individuals aged between 18 and 25, have been found to possess some type of financial asset, including crypto. Asian Gen Z is leading the path in digital currencies investment, which strengthens these financial vehicles’ position on the market and transforms the region into a frontrunner in innovative finance. The trend is so well-established that even traditional financial organizations, such as family offices, are responding to the need to enhance their capital management, with more and more now introducing crypto to their clients’ portfolios.
Crypto is having a blast on the Asian ground, and with this, we discover newish related insights. Ready to unearth them?
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5% of the portfolio belongs to crypto
High-net-worth individuals are extending their investments into digital currencies, with several looking to dedicate a whopping 5% of their portfolios to this asset category. The trend is mainly prevalent in family offices across China, Hong Kong, Singapore, and a few other leading crypto hubs. These family offices navigate new opportunities to boost the capital they’re entrusted with, and the rising prevalence of crypto among today’s millennials and zoomers is roughly all they need to ensure crypto will pass the test of time. Swiss investment bank UBS has emphasized that there are even family offices doing Chinese business abroad that are shifting their attention to crypto, and drawn attention to the rising engagement in digital assets among the second- and third-generation family members. All these indicate a generational move away from some traditional assets and into cutting-edge digital ones.
In several months, NextGen Digital Venture founder Jason Huang raised more than $100MN to release a new long-short cryptocurrency equity fund – an investment fund that combines capital from more investors to further direct money in crypto and blockchain projects and companies instead of crypto itself. Enthusiasm like this reinforces crypto’s potential to become the coin of the future across the Asian land.
From the ultra-richest to the youngest Zoomer – crypto has caught them all
Asia is home to some of the world’s most affluent billionaires, who control companies in multiple sectors, from retail to energy to tech and software. Seven of the top ten ones are Chinese and include Jack Ma, co-founder of Alibaba Group, and Zhang Yiming, co-founder of Bytedance, to name a few. While keeping their investor positions rather far from the public eye, names like Jack Ma are reportedly engaging with blockchain technology. Circle Internet Group Inc. and Ma-funded Ant Group Co. are collaborating to add the former’s USDC coin on its blockchain app once the asset is compliant within the country. But millionaires’ interest in cutting-edge assets isn’t limited to such heavy names; tech-savvy individuals, among whom Zoomers’ share is steadily rising, are getting involved with crypto. One of the biggest trend drivers is the actions of governments like the Singaporean one, which offers clear regulatory frameworks that simplify investing and boost confidence in crypto. Plus, these markets are very familiar with technology and web3 ecosystems, which makes complex topics like blockchain and digital money easier to digest.
Why Asia resonates so well with crypto
There are quite a few cultural reasons why crypto resonates so strongly in Asia that expand beyond wealth and regulation. In countries like China, India, and Vietnam, saving and investing traditions are very common sights in society, with families having long favored assets like gold and property and accumulated them as stores of value. The rise of digital currencies has made the entrance of these assets’ modern equivalents: assets that are borderless, liquid, and often seen as inflation-proof.
Moreover, Asia houses some of the most adaptive populations worldwide when it comes to technology, and is now racing to embrace generative AI faster than any other region, to highlight its ambitions. While South Korea and Japan made a name for their rapid fintech solution adoption, Southeast Asia has become one of the fastest-growing hubs in mobile banking and online payments, and countries like the Philippines and Vietnam are stepping up their digital game, emerging as digital banking powerhouses. For a generation already in love with digital wallets, gaming assets, and in-app tokens, transitioning to cryptos feels like just the next natural step – and less than exploring the unknown.
Governments are stepping in
Another crucial factor why crypto is thriving in Asia is the crypto-friendly government policies of some governments, such as Singapore’s, which has proactively established regulatory clarity that attracts investors and startups alike. Hong Kong has recently become more supportive of crypto exchanges, signaling its intention to become a leading power in this super-competitive industry. On the other hand, China has taken a harsher stance on direct crypto trading, it sees as a speculative bubble; though it has steadily invested in blockchain tech and even launched its own central bank digital currency, the digital yuan.
While these approaches are so different, they manage to show the broader strategy of the continent jointly: blockchain and crypto are on fertile ground here.
Asia as a crypto powerhouse.
Asia’s crypto ecosystem is thriving and if the trend continues, the region may move from being an enthusiastic adopter into a shaper of international crypto norms. So far, crypto has expanded beyond a speculative show – it’s a central pillar of investment strategies across more investor types, wealth classes, and generations. Stay close to watch crypto unfold!