UBS Wealthy Clients Abandon U.S Dollar Assets for Crypto and Gold

Amy Lo, Chairman of Global Wealth Management Asia at investment bank UBS, recently disclosed that wealthy UBS clients are abandoning the United States dollar and assets focused on the fiat currency. These deep-pocketed individuals now opt for investment vehicles like cryptocurrencies, gold, and Chinese assets.

UBS Clients Wave Bye to U.S. Dollar

The UBS executive shared insight into investors’ asset class choices at a fireside chat with Bloomberg’s newscaster Yvonne Man yesterday at the New Voices event in Hong Kong.

The Bloomberg newscaster asked how UBS managed with the impact of the recent trade war between the U.S. and China. Lo’s comment on investors’ asset choices came after meetings with family offices managing the portfolios of high-net-worth individuals. The outcome of these meetings showed that many became uninterested in U.S.-denominated assets during the trade war.

Since most deep-pocketed clients diversify into asset classes like crypto, the UBS executive stressed that the investment company is moving to establish infrastructures to enable these customers to access their desired investment vehicles. Notably, UBS is not new to the crypto market. In November 2024, the financial firm launched its first Ethereum-based tokenized investment fund. Created for the company’s Singapore users, this product paved the way for investors to access a blockchain-focused cash management solution.

Lo added that these wealthy investors are also interested in other investments. For instance, they are eyeing the tech sector, particularly innovations from China. Also, 78% of the bank’s clients are investing in the private markets, while 28% plan to increase their allocation in the future.

Trade War Between the U.S. and China

Shortly after being sworn in as the U.S. president, Donald Trump imposed 145% tariffs on goods coming from China. The Chinese government responded with a 125% tariff on American goods. This action affected various businesses and markets, including the crypto market.

In late April, both governments revealed that they were discussing downsizing the massive tariffs. This positive news rubbed off on the crypto market, as prices of top digital assets began increasing. On May 12th, both governments agreed to a 90-day truce regarding the trade war. The American government agreed to drop its tariff to 30%, while China dropped its tariff to 10%.

This move has propelled Bitcoin’s market value to as high as $105,000.

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