Wealthy Hong Kong investors test digital assets as regulations evolve

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Highlights

Hong Kong family offices show rising but cautious interest in digital assets
Most crypto allocations remain below 5% despite growing institutional interest
Tax reforms could expand digital asset adoption among wealthy investors

Family offices test digital assets

Research into the investment preferences of Hong Kong’s family offices, which play an important role in the city’s economy, shows that these organizations are planning to increase their exposure to virtual assets and private markets. However, their investment appetite remains cautious and measured for now.

According to KPMG China, 92% of family offices show interest in digital assets, 58% have already invested in them, and 34% are planning to invest. However, the reported allocations typically remain below 5%.

Grant Thornton Hong Kong reported that 35% of family office managers plan to increase investments in blockchain technology, while 27% intend to expand their exposure to cryptocurrencies. Even in these cases, investment sizes remain relatively small.

The research suggests that positions in crypto assets are carefully calibrated and increased gradually, resembling an early testing phase before potential scaling of investments.

A key factor shaping the adoption of virtual assets is the conservatism of the older generation, which still holds decision-making power in many family offices. The Roger King Center for Asian Family Business and Family Office at the Hong Kong University of Science and Technology (HKUST) found that younger investors in the technology sector are more willing to experiment, while older investors tend to remain cautious.

Even among early adopters of new technologies, crypto allocations are often minimal and frequently account for only about 2–5% of portfolios.

As wrote Coincu, another key factor is regulation, which is only now beginning to become more supportive of digital assets. Financial Secretary Paul Chan announced plans to introduce amendments to tax legislation in the first half of 2026 to include digital assets, precious metals, and commodities in Hong Kong’s tax framework for family offices. Greater clarity around “qualifying investments” could reduce complications when structuring mandates for managing family wealth.

Global competition pushes Hong Kong to act

Additional factors encouraging the adoption of digital assets include the city’s ambition to attract more young global talent. Creating a comfortable environment for these professionals increasingly involves digital payments infrastructure and modern digital asset services.

As a result, institutional custody solutions are expanding in Hong Kong, while access to cryptocurrency exchanges is gradually becoming more available under local regulatory frameworks.

While families continue to combine crypto investments with traditional wealth management strategies, data from the Hong Kong Private Wealth Management Association shows that more than half of private wealth service providers have already started—or plan within the next three years—to invest in digital asset channels, custody solutions, or related products.

Analysts note that family offices traditionally enter new asset classes later than venture funds and crypto-native investors. However, their participation often marks an important stage in the institutionalization of a market.

A similar dynamic was previously observed in hedge funds and private equity. New asset classes are typically tested with small portfolio allocations before gradually increasing exposure as experience grows and regulated infrastructure develops. As a result, even relatively small allocations of 2–5% could eventually evolve into more significant positions.

For Hong Kong, this process also has strategic implications. The city is actively competing with Singapore to attract ultra-wealthy investors and family offices, and building a regulated digital asset ecosystem is part of that competition.

Expanding tax incentives and developing institutional infrastructure—from custody services to licensed crypto platforms—could strengthen Hong Kong’s position as one of Asia’s key hubs for global wealth management.

As we reported, Hong Kong advances virtual asset regulation framework

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