UBS Group's Amy Lo Reveals Shift in Investment Behavior Among High-Net-Worth Individuals

UBS Group's Co-Head of Wealth Management for Asia, Amy Lo, has revealed a notable shift in investment behavior among high-net-worth individuals.

High-net-worth individuals in Asia are shifting their investments from US dollar-based assets to gold, cryptocurrencies, and Chinese investments, according to UBS Group's Co-Head of Wealth Management for Asia, Amy Lo.

Speaking at an event in Hong Kong, Lo attributed this trend to rising geopolitical tensions, particularly between China and the United States, which have prompted wealthy investors to diversify beyond traditional US-centric portfolios.

"Clients are looking at commodities, digital assets, and alternative investments. Volatility will definitely continue," Lo stated.

This shift is evident in the changing investment preferences of UBS's clients. In the past year, there has been a strong demand for gold and US dollar-denominated bonds as investors sought safe-haven assets.

However, with the US dollar depreciating and the Chinese economy recovering, clients are now showing interest in diversifying into the yuan and A-shares.

"We are seeing a pivot towards Asia-focused investments, particularly in A-shares and yuan-denominated bonds, as clients recognize the potential for a strong rebound in the Chinese economy," Lo added.

Meanwhile, in South Korea, the so-called "Korea Premium," which refers to the price gap between Korean and global crypto exchanges, continues to decline.

Once a symbol of intense retail demand, particularly during the 2021 bull run when the premium soared above 20%, it now reflects a more muted sentiment among local investors.

The current decline suggests that the latest Bitcoin rally is being driven by global institutional capital, rather than Asian retail traders.

Analysts believe this trend will persist, especially with the approval of US spot Bitcoin ETFs and increasing interest from sovereign wealth funds and corporations.

If the Korea Premium does return, even a 10% difference would now be considered high compared to past cycles, highlighting the shift in global market leadership.

Bitcoin (BTC) Price Holds Steady

Crypto market analyst ColinTCrypto pointed out that Bitcoin's current price trajectory closely follows the growth in the global M2 money supply.

He noted that Bitcoin recently surged from $76,000 to over $105,000, predicting a potential breakout to $120,000 by May-end if the correlation holds.

Bitcoin is still right on track with Global M2.

$120,000+ by the end of May?

Will BTC get a huge move up around the May 24th like Global M2 shows? If so, it’s likely BTC breaks into new ATHs. The FOMO at that time will be palpable due to all the articles and news. pic.twitter.com/gYuNQGx0Uj

— Colin Talks Crypto 🪙 (@ColinTCrypto) May 13, 2025

At the time of writing, Bitcoin is trading around $103,500, gaining over 0.70% in the past day.

In the past week, its market capitalization has grown by $15 billion, bringing it to around $2.05 trillion.

Additionally, the Crypto Fear & Greed Index suggests that investors are now turning greedy to invest in digital assets.output: Key interest rates in the United States will remain elevated for an extended period, according to a recent statement by Federal Reserve Governor Michelle Bowman.

During a Monday speech at the Montana Bankers Association Convention, Bowman emphasized the importance of bringing inflation down to the two percent goal.

"We will need to keep interest rates higher for longer to decrease demand in the economy and bring inflation down to two percent," Bowman said.

According to the Consumer Price Index (CPI), inflation in May reached four percent compared to the same period last year. However, compared to April 2025, there was a slight decrease of 0.1 percent.

While inflation has moderated from its peak in early 2022, it remains significantly above the Fed's two percent target.

The Fed officials have indicated that they might pause increasing interest rates at the upcoming June meeting. Currently, the federal funds rate stands in a range of 4.75 percent to five percent.

In March 2022, the Fed initiated the most rapid series of rate hikes since the 1980s to combat surging inflation. The central bank has raised the benchmark lending rate by 5 percentage points, bringing it to its highest level since 2000.

The officials are closely examining economic data to determine the optimal time to halt the rate increases. However, they have also warned that if inflation does not subside as anticipated, further rate hikes may be necessary.

"We are assessing each meeting based on the incoming data and the implications for the economic outlook," Bowman noted.

She added that if inflation does not decrease as quickly as expected, or if the labor market begins to deteriorate, further rate increases may be required to reach the Fed's