A UBS report indicates that wealthy individuals in Asia are turning to cryptocurrencies and gold due to concerns regarding the stability of the dollar.

Wealthy investors in Asia are reducing their investments in U.S. dollar assets and are increasingly favoring gold and cryptocurrencies. Investments in Chinese assets and Bitcoin are rapidly gaining popularity as portfolios transition from traditional safe investments to more modern alternatives. UBS Group has noted a significant decline in the interest of high-net-worth individuals in U.S. dollar-denominated assets. Conversely, there is growing interest in Chinese markets, as well as in gold and cryptocurrencies. Rising geopolitical tensions and ongoing market fluctuations have driven a trend of readjustment throughout the region. In an interview with Bloomberg at the New Voices event in Hong Kong on May 13, UBS’s co-head of wealth management for Asia, Amy Lo, remarked that “gold is becoming increasingly popular.” “Her remarks indicate a change in focus in the region, where clients are placing greater trust in what they view as more robust or appealing assets amid ongoing financial instability. This has led to a more evident inclination towards diversification.” Portfolios that traditionally depended heavily on U.S. assets are undergoing reconfiguration. Investors are shifting towards alternative currency classes, including cryptocurrencies and commodities. Meanwhile, sentiment towards the dollar has weakened following a 19-year change. According to the latest fund manager survey conducted by Bank of America, May recorded the largest drop in fund managers’ exposure to the U.S. dollar in nearly two decades. This indicates a broader trend where people’s preferences are moving away from American financial instruments towards new opportunities emerging in Asia. Additionally, it benefits Chinese investments, as there is renewed optimism following a brief trade truce between the U.S. and China.