UBS: Wealthy Clients Allocating Up to 5% to Crypto Amid Inflation Hedges

The move reflects rising demand for inflation hedges and protection against currency devaluation, according to the bank’s 2025 Global Investment Returns Yearbook.

Crypto Goes Mainstream in Wealth Strategy

The yearbook underscores a growing shift in portfolio construction among the affluent. Once seen as speculative, Bitcoin (BTC) and other digital assets are now entering mainstream wealth management strategies. UBS analysts note that concerns around the long-term viability of fiat currencies, especially the U.S. dollar, are driving this pivot.

“Digital assets are no longer viewed as niche,” the report states. “They are increasingly seen as a strategic hedge in a high-volatility, structurally inflationary environment.”

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Rethinking Diversification Models

UBS’s research shows that traditional diversification tools — such as real estate, commodities, and equities — are being reevaluated in light of systemic risks and macroeconomic uncertainty.

Cryptocurrencies, with their low correlation to legacy markets, are being considered for their portfolio buffering potential against financial shocks.

The trend reflects a broader evolution in how wealth managers approach risk and return in the 2020s, as digital assets become embedded in global capital allocation frameworks.

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