SINGAPORE: In anticipation of the Bitcoin halving event in April, a recent study by the 2024 Independent Reserve Cryptocurrency Index (IRCI) revealed that 48% Singaporean crypto investors plan to increase their Bitcoin holdings in the next 12 months.
The Edge Singapore reports the research further pinpointed that those who allocate more than 50% of their investment portfolio to cryptocurrencies are the most inclined to ramp up their Bitcoin positions.
Fuelled by recent industry advancements such as the green light for spot Bitcoin exchange-traded funds (ETFs) in the US, a notable 39% of Singaporeans now view Bitcoin in a more positive light.
With over half (51%) being aware of the US Securities and Exchange Commission’s approval of spot Bitcoin ETFs, and a significant 33% showing openness to investing via an overseas offering due to unavailability for retail investors locally.
According to Independent Reserve Singapore CEO Lasanka Perera, “The long-awaited arrival of the spot Bitcoin ETFs has supercharged the demand side for Bitcoin as billions of dollars from institutions has poured in. The trust and understanding of Bitcoin have grown significantly over the past few years, and more Singaporeans are increasing their allocations.”
Nevertheless, 75% of Singaporean investors prefer direct Bitcoin investment through cryptocurrency exchanges over Bitcoin ETF offerings due to lower fees and more trading options.
Singapore has scored 56 on the IRCI this year, showing a positive shift in public sentiment towards cryptocurrency, up by a point from 2023.
Although overall awareness and ownership have slightly dipped, other crucial metrics indicate a growing confidence and optimism within the market.
This year’s IRCI disclosed that Singaporean investors are becoming more sophisticated across various fronts.
A majority (52%) have been actively involved in the market for over three years, with diversified portfolios becoming increasingly prevalent, as investors are now holding six or more different cryptocurrencies.
Despite market fluctuations, Singaporean crypto investors seem resolute about their plans for the next 12 months. Over half (53%) are poised to inject more capital into their existing portfolios, while 45% are eyeing diversification into new projects.
64% of crypto owners reported profits this year, marking a 9 percentage point increase from last year and edging closer to the 74% peak during the 2021 bull market. Conversely, only 10% reported losses this year, a drop from 26% in 2023.
Amidst rising interest rates and cost-of-living concerns, almost a third (29%) of Singaporeans are inclined to hold or increase their crypto allocation, while another 37% unaffected by such concerns also plan to hold or add their crypto holdings.
Of those surveyed, investors aged 55 and above exhibited optimism, with 25% planning to maintain or increase their crypto allocations despite cost-of-living pressures, possibly due to their financial stability and reduced financial obligations.
With renewed optimism surrounding Bitcoin’s price, almost half (48%) of Singaporeans believe Bitcoin will be valued between S$50,000 and S$100,000 by 2030. Meanwhile, 31% of existing crypto investors are confident that Bitcoin will surpass S$100,000.
“All eyes will be on Bitcoin in the coming few weeks. With the halving on the horizon, the supply of newly mined Bitcoin will reach an all-time low. This sharp decline in the supply will most likely see Bitcoin’s price break all-time highs, many times throughout the year,” says Mr Perera.
He added, “Ultimately, this year’s IRCI reveals that Singaporeans are just as excited about Bitcoin as I am. Bitcoin is seen as a digital gold, but superior to gold in many ways — it is portable, divisible, scarce, verifiable and can move over the internet 24/7.”
The IRCI, now in its fourth year, is an annual survey conducted by independent consumer insights provider Toluna, including over 1,500 Singapore residents. Designed to be cross-sectional and unbiased, this year’s survey was conducted in February 2024. /TISG
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