How AI, Crypto, and ESG Redefine Money

The wealth management industry is going through a major reset. Investors are moving away from passive investing and vague sustainability promises. Instead, they want better risk transparency and access to new asset classes.

At the same time, financial technology is undergoing rapid transformation. Crypto is moving into the portfolio mainstream, no longer a fringe allocation.

Similarly, artificial intelligence has become a critical tool rather than an experiment. And ESG (environmental, social, and governance) standards are shifting from marketing talk to legal and ethical requirements.

Related: Trump Policies Could Extend Asset Rally, Arthur Hayes Says as BTC Steadies

Industry analysts are calling this moment the “wealth reset of 2025, ” a convergence of digital assets, AI-driven advisory, and verified ESG strategies that will shape how money is managed for years to come.

Global Investor Shift

The Avaloq Wealth Insights 2025 survey shows how far investor behavior has changed since the post-2022 scandals. Nearly one in four investors now access crypto through their bank or wealth manager, double the previous year. This shows that trust in mainstream finance is making a comeback.

• Meanwhile, ESG has hit critical mass. About 41% of global investors now use ESG strategies, with Asia leading the way. The focus is no longer if ESG matters, but how well firms can deliver on it.

• Investors today are less patient. Almost 4 in 10 expect faster reactions to market changes—using AI tools, instant communication, or real-time portfolio updates. The old model of meeting once a quarter is quickly becoming outdated.

Crypto’s Role in Wealth Management

For hedge funds, digital assets are no longer an experiment; they are a reality. The PwC/AIMA 6th Global Crypto Hedge Fund Report shows:

• 47% of traditional hedge funds now hold digital assets (vs. 29% in 2023).

• Spot Bitcoin and Ethereum ETFs have generated over $1.4 trillion in cumulative trading volumes since 2024.

• Funds are shifting from simple spot exposure to derivatives, stablecoins, and tokenized assets.

Stablecoins, in particular, are becoming the plumbing of modern finance.

• 78% of funds use them for settlement, liquidity, and yield strategies. Tokenization is emerging, too. About a third of funds are exploring tokenized products, though regulatory uncertainty slows broader adoption.

Regional Trends

Asia

In Singapore and Hong Kong, regulators are establishing frameworks for stablecoins and digital asset custody. At the same time, banks are racing to integrate AI into their wealth management platforms. 

• Avaloq reports that 61% of investors in Singapore are open to AI-supported advice, while nearly a third in Hong Kong are comfortable with fully AI-driven recommendations.

• In August,  Hong Kong passed the Stablecoin Ordinance, establishing a licensing system for stablecoin issuers, requiring compliance with financial safeguards and risk management measures.

• The Monetary Authority of Singapore (MAS) also has clear frameworks for crypto service providers and stablecoins, spelling out reserve backing, redemption rights, and licensing requirements that many peers have yet to define. 

• But the rush is exposing weak spots: over 67% of wealth managers in Singapore say their tech systems are outdated. Firms that fail to upgrade risk being locked out of Asia’s most dynamic investor base, which is young, digitally native, and demanding.

United States

The U.S. remains cautious. Yes, crypto ETFs, GENIUS and CLARITY Act are a breakthrough, but only 24% of U.S. investors are ready to accept AI-driven advice without human oversight.

• Trust is the choke point as 72% of clients leave advisers due to mistrust or poor communication.

• Traditional funds are split. Among those without crypto exposure, three-quarters say they are unlikely to invest in the next three years.

• Regulatory clarity may be improving, but cultural conservatism in wealth management runs deep.

Europe

Europe is caught between innovation and fragmentation. The EU’s Markets in Crypto-Assets (MiCA) regulation offers a framework that many funds welcome. Yet national tax, licensing, and reporting rules still diverge, slowing adoption.

• France’s securities regulator is considering banning European license “passporting” over concerns on MiCA regulation enforcement gaps in other EU countries.

• ESG is where Europe should lead, but communication gaps persist. Investors often say their banks fail to explain ESG strategies in plain language, undercutting trust even where regulation is strongest.

Emerging Markets & Middle East

• In markets like the Middle East and Southeast Asia, wealth is growing rapidly, especially among younger UHNWIs. 

• These clients demand digital onboarding, mobile platforms, and instant portfolio access. In places like Thailand, generational wealth transfer is driving a sharp shift in expectations.

• Some Gulf states are advancing fast on crypto custody and Shariah-compliant ESG products. 

Others lag behind, leaving investors vulnerable to opacity and weak enforcement. In these regions, the wealth reset is as much about catching up to infrastructure standards as it is about innovation.

The Trust Gap

Across regions, one theme is constant, which is trust or the lack of it.

• Avaloq’s survey shows 77% of investors rank communication as their top concern, ahead of returns or product access. Yet fewer than one in three feel their bank communicates ESG strategy well.

• The risk is obvious. Without transparency on ESG, AI decision-making, or crypto custody clients will walk. And they increasingly have alternatives: fintech platforms, digital asset managers, and independent advisers who are faster and cheaper.

Convergence: Where Finance and Tech Collide

The most important shift is not crypto, ESG, or AI individually, it’s their convergence.

• Wealth managers are embedding crypto ETFs alongside ESG funds and AI-driven personalization.

• Hedge funds are experimenting with tokenized credit, on-chain reinsurance, and staked ETFs.

• AI tools are being applied to compliance, KYC, tax optimization, and real-time client reporting.

Yet adoption remains uneven. Asia races ahead with innovation; the U.S. anchors itself in trust; Europe wrestles with regulatory complexity; emerging markets leapfrog in some areas but lag in others.

In Sum

Finance is moving through a full reset. The new framework for wealth managers is clear: crypto has become a core portfolio asset, AI-driven personalization is now an investor expectation, ESG is a regulatory requirement rather than a branding tool, and trust remains the currency that underpins it all. 

Related: Trump Family’s Crypto Wealth Eclipses Real Estate Holdings, Nears $8 Billion

Firms that bring these four pieces together won’t just stay relevant in the next decade,  they’ll be the ones setting the pace.