According to the report, Singaporean institutional investors are leading the way in increasing allocations to cryptocurrencies. Signum’s annual Future Finance survey.
The report revealed that 57% of Singaporean respondents plan to increase their long-term crypto investments, which is significantly higher than the survey’s global average of 47%.
The survey was conducted in Q3 2024 and gathered insights from over 400 institutional and professional investors, including 121 participants from Singapore.
Respondents, with an average of over 10 years of investment experience, represented a variety of sectors including banks, hedge funds, asset managers, family offices, DLT foundations and funds.
Singapore investors cited confidence in the long-term potential of cryptocurrencies and their diversification benefits as key drivers for increased allocations.
The survey also highlights that 56% of Singaporean respondents cited exposure to crypto megatrends as their top reason for investing, followed by 41% cited portfolio diversification and 39% cited yield generation. did.
27% plan to maintain their current positions, while only a small portion (2.5%) intend to reduce their exposure.
changing barriers to entry
The findings also indicate changes in the perceived barriers to institutional adoption of cryptocurrencies.
Respondents in Singapore cited security and protection concerns (45%) as the main hurdle, while just 30% thought regulatory clarity was a major barrier, down from last year.
Improved regulation, coupled with the introduction of spot Bitcoin and Ether ETFs in the US, has increased institutional confidence in this asset class.
Market education remains a priority, with 90% of Singapore investors expressing the need for better quality information to facilitate further investment. This number is higher than the global average of 76%.
new investment trends
With trends such as AI and decentralized physical infrastructure networks (DePIN), Layer 1 solutions and Web 3.0 infrastructure have emerged as the most attractive crypto investment sectors for Singapore-based investors.
The survey found that 71% of respondents in Singapore favor Layer 1 solutions, 56% are interested in Web 3.0 infrastructure, and 41% are interested in Layer 2 solutions.
Singapore investors also recognize the potential for tokenization of traditional assets, with mutual funds (47%) and corporate bonds (47%) being the areas of most interest, followed by equities (40%) and This was followed by hedge funds (39%).
Preferred investment strategies included active management exposure to generate alpha (41%), passive market exposure (37%), and sector exposure to capture target growth areas (36%) .
“Our research shows that Singaporean investors remain excited about the asset class, with 57% planning to increase their long-term investments, compared to the survey average of 47%.
Notably, investors here are less likely (30%) to consider lack of regulatory clarity to be the main barrier to entry. This shows that the ecosystem is benefiting from our progress on the regulatory front. ”
Gerald Goh, co-founder and CEO of APAC, said: signum.
Bitcoin’s recent rally is adding momentum to the broader cryptocurrency market.
Bitcoin since Donald Trump’s reelection There was a sudden increase Reflecting increased investor interest and market activity, it reached an all-time high of USD 91,000 as of November 14th.
Some analysts currently predict that cryptocurrencies could: Reach USD 100,000further increasing optimism among investors around the world.
Featured image credit: Edited from freepic
