High-net-worth families and family offices in Asia are increasing their investments in cryptocurrencies, driven by rising interest and recent regulatory changes.

Wealth managers in Hong Kong and Singapore report more enquiries from these investors, while crypto exchanges and funds have seen higher demand.

NextGen Digital Venture, a Singapore-based cryptocurrency investment firm, raised over US$100 million for its Next Generation Fund II, a long-short cryptocurrency equity fund targeting family offices and fintech entrepreneurs, according to founder Jason Huang.

UBS said some overseas Chinese family offices plan to raise their cryptocurrency exposure to around 5% of their portfolios.

Hong Kong’s new stablecoin legislation and the recently approved GENIUS Act in the US under President Donald Trump have contributed to the trend.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Asian family offices show rapid acceleration in crypto adoption rates

The current surge in crypto interest represents a dramatic shift from just a few years ago, when most Asian family offices were still cautious about digital assets.

In 2021, only 19% of Asia-Pacific family offices were invested in cryptocurrency, but over half already viewed it as a promising investment opportunity2. By 2024, this sentiment shifted dramatically with 37% of family offices in the Asia-Pacific region actively investing in digital assets—significantly higher than other global regions3.

This acceleration mirrors broader institutional trends, with one survey showing family office bullish sentiment toward cryptocurrencies jumping from 8% to 17% in just one year3.

The rapid adoption suggests family offices learned from early success stories like FBG Capital, which transformed an initial $20 million investment into $200 million within a single year during crypto’s early institutional phase4.

The shift from viewing crypto as experimental to “must-have” portfolio allocation reflects how quickly institutional attitudes can change once regulatory clarity emerges and performance track records establish legitimacy.

2️⃣ Regulatory developments unlock previously cautious institutional capital

The timing of increased family office interest directly correlates with favorable regulatory developments across key Asian markets, removing previous barriers to institutional participation.

Hong Kong’s recent stablecoin legislation and Singapore’s regulatory clarity have created the framework that institutional investors require for larger allocations3. These developments address longstanding institutional concerns about compliance and legitimacy that kept family offices on the sidelines during crypto’s earlier years.