Wealthy investors across Asia are showing limited appetite for new cryptocurrency purchases. High-net-worth clients in Malaysia and Singapore are still keeping crypto assets in their portfolios, but fresh capital is increasingly flowing into gold, bank deposits, and other alternative financial investments.

Cryptocurrency investment funds have recorded their largest outflows of 2026 at the same time that gold posted its strongest quarter on record, underscoring a more defensive tone among investors. Rather than exiting digital assets entirely, many appear to be delaying new crypto allocations in favor of more traditional safe-haven assets that can preserve flexibility while broader conditions remain unsettled.

Where the fresh money is going instead

A new HSBC survey suggests there is no broad rush out of cryptocurrencies. Wealthy investors appear to be maintaining their existing positions while directing new money toward gold, cash savings, and other assets.

HSBC said:

“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

The survey said investors are expected to increase allocations to gold and fixed deposits over the coming year while keeping cryptocurrency exposure at roughly the same level. Cash remains a reserve for future opportunities rather than a clear signal that investors are abandoning risk.

Broader market data points in the same direction. In its report, the World Gold Council said gold demand reached 1,231 tonnes in the first quarter of 2026, up 2% year over year. Changes in bullion prices pushed the value of that demand to a record $193 billion. Demand for coins and bars also climbed sharply to 474 tonnes, a 42% increase from a year earlier, driven largely by buyers in Asia, where physical gold remains a familiar portfolio holding when investors want liquidity and a tangible store of value.

$4.21 billion has walked out of crypto funds

Institutional flows reflected the same cautious approach.

According to CoinShares data, digital asset investment products recorded about $1.67 billion in outflows for the week ending May 31. That was the third straight week of withdrawals and the second-largest weekly outflow of the year. Over the past three weeks, investors pulled a total of $4.21 billion from crypto funds.

Bitcoin funds saw $1.438 billion in outflows, while Ether products lost $257 million. Assets under management fell to $141 billion from $148 billion a week earlier, the lowest level since early April. CoinShares analyst James Butterfill said the decline in assets was linked to the geopolitical situation in Iran, which had a greater effect than any positive developments in U.S. cryptocurrency legislation.

Gold’s record quarter tells the other half

The same geopolitical backdrop has also supported demand for gold.

The World Gold Council said the LBMA gold price reached a record quarterly average after hitting successive all-time highs. Central banks also continued buying, adding a net 244 tonnes of gold, up 3% from the same period a year earlier.

The Council said geopolitical uncertainty, persistent inflation, and limited investment opportunities are likely to keep supporting gold demand. It added that purchases of gold bars and coins are expected to remain concentrated among Asian investors through 2026, reinforcing the region’s role in global physical gold demand even as crypto holdings are maintained rather than expanded.

Risk rotation at a glance

Taken together, the data point to a broader shift in portfolio allocation rather than a wholesale exit from digital assets. For investors weighing liquidity, preservation, and optionality, the current pattern suggests they are keeping crypto exposure in place while using gold, deposits, and cash to absorb near-term uncertainty.

Crypto investments fell by $4.21 billion over three weeks, while global gold demand rose to 1,231 tonnes worth a record $193 billion. Physical gold remained especially popular, with demand for bars and coins rising 42% from a year earlier, and central banks adding another 244 tonnes to their reserves.