The digital assets sector isn’t receiving much interest from wealthy asset holders across Asia. While high-net-worth clients in Malaysia and Singapore are still holding onto crypto assets in their portfolios, they are directing new funds towards gold, bank deposits, or alternative financial investments.
Cryptocurrency investment funds have suffered their highest outflows of 2026 at the same time when gold registered its best quarter ever, which could point to investors behaving much more defensively than before. Instead of selling digital assets completely, they seem to be opting for postponing purchasing cryptocurrencies in favor of more traditional safe havens.
Where the fresh money is going instead
According to the new survey from HSBC, there are no signs of investors fleeing from cryptocurrencies. Rich investors seem to be sticking to their current investments, while investing their new money in gold, cash savings, and a variety of other assets.
As HSBC specified:
“Investors are putting the core of their portfolios first, balancing protection and growth, and diversifying with intent. Allocations continue to shift across cash, equities and gold. But cash holdings are playing a clear role in giving investors a buffer to rebalance, deploy or hold steady as conditions change.” — HSBC Global Affluent Investor Snapshot 2026
It mentioned that investors are expected to raise allocation to gold and fixed deposits in the coming year while continuing with the same level of cryptocurrency exposure. Cash, on the other hand, is still regarded as dry powder for potential opportunities at a later time rather than a sign that investors are retreating from risk altogether.
The larger market shows a similar trend. In their report, the World Gold Council stated that gold demand reached 1,231 tonnes in Q1 of 2026, which is an increase of 2% year-on-year. Changes in bullion prices brought the demand value to an unprecedented record of $193 billion. In addition, the demand for coins and bars rose significantly to 474 tonnes, which is 42% more than in the previous year, mainly because of buyers from Asia.
$4.21 billion has walked out of crypto funds
Institutional investor flows showed the same cautious sentiment.
As per CoinShares data, digital asset investment products had approximately $1.67 billion in outflows for the week ending May 31. This marks the third consecutive week of withdrawals and the second highest weekly outflow of this year. Overall, investors withdrew a total of $4.21 billion over the past three weeks.
The total amount of outflows from Bitcoin was $1.438 billion and from Ether $257 million. Overall, assets under management dropped to $141 billion from $148 billion a week before, their lowest level since early April. According to CoinShares analyst James Butterfill, the decrease in assets can be attributed to the geopolitical situation in Iran, which had a bigger impact than any positive news regarding cryptocurrency legislation in the USA.
Gold’s record quarter tells the other half
The same geopolitical situation has greatly increased the demand for gold.
According to the World Gold Council, the LBMA gold price reached a record quarter average after hitting successive maximum values. Many central banks behaved in the same manner, purchasing 244 tons of gold by net, which is an increase of 3 percent compared to the same period a year earlier.
The Council expects that geopolitical uncertainty, ongoing inflation, and limited investment opportunities will continue to contribute to the demand for gold. The purchases of gold bars and coins will be mainly performed by Asian investors through 2026.
Risk rotation at a glance
In summary, the statistics indicate a wider shift of investment portfolios instead of a wholesale abandonment of digital currency.
Crypto investments declined by $4.21 billion over the three weeks while the world’s need for gold grew to 1,231 tons valued at record-breaking $193 billion. Investments in physical assets remained particularly high as demand for gold bars and coins was up by 42% in comparison with the previous year, and central banks bought an additional 244 tons of gold.
