Despite the custody issues and sudden volatility concerns, cryptocurrency investors in Singapore are generally bullish on the market and expect another surge soon, says the Sygnum surveys. As a regulated bank supervised by the Swiss Market Financial Authority (FINMA), Sygnum provides deep insights into the crypto economy through various research, analysis, and surveys.
Sygnum has been doing various quarterly and yearly surveys around the globe, and the recent Singapore-based surveys provide findings related to the perception of participants regarding the future price, expected regulations, and potential concerns.
More than 400 participants, including institutional and professional investors, participated in the surveys, and the full report is filled with the percentage of allocations, investment strategies, barriers, viewpoints of ETF, market outlook from 6 months to 5 years, and commentaries from heads of various crypto-based companies.
Detailed Insights from the Sygnum Reports Regarding Investing in Crypto
Sygnum usually provides well-researched crypto market insights, however, the detailed reports are available only to qualified investors. They provide monthly reports, quarterly reports, yearly ones, and in-depth future finance reports. Here are the major insights from the recent reports and surveys based on Singapore:
- 65% of investors in Singapore expect a long-term bullish uptrend for Bitcoin as it hits all-time highs. They believe that the coin will reach further heights with the arrival of more institutional investors.
- 57% of institutional investors expect plans to increase the allocation in their portfolio, following the trend of U.S.-based investors. They are not anticipating a bear market soon.
- 69% are hopeful about regulatory clarity, especially after the recent reversal in European and American laws regarding crypto. They expect the strict laws in Singapore to relax soon.
- 70% of the investors are confident about Bitcoin being recognized as an asset class, mainly because of the recent developments in ETFs. They consider bank ETFs as a safer alternative to DeFi lending platforms.
- 50% of investors had only 10% of their holdings in crypto. They are still into assets like Gold, stocks, and real estate rather than crypto. The high volatility and lack of regulatory clarity pulled them away from the blockchain.
- 81% of respondents consider investing more if they have access to in-depth research and a better understanding of the market. Many blamed the mainstream media for providing speculations and rumours rather than factual data.
How Singapore-based Investors View Crypto Assets?
Singapore has an intriguing crypto-friendly space and culture, with a large number of youngsters exposed to the web3 frenzy. Most of them had an exposure to it as a part of the global megatrend. The participants of the survey, mostly professionals and institutions, also acknowledged that most of them are here in relation to the global trend. Here is an excerpt from the report regarding the reasons for investing in crypto:
| Question: Why do you invest in crypto assets? | |
| Exposure to the crypto megatrend | 62% |
| Portfolio diversification | 52% |
| Safe haven / macro hedge | 45% |
| Yield generation | 38% |
| Short-term trading | 36% |
| New alternative asset class | 31% |
| Market neutral returns | 19% |
The Barriers to Investing in Crypto
Another major finding of the Sygnum survey is that the primary concerns among investors are asset volatility and custody concerns rather than regulatory clarity and lack of trust. Let’s get into the details.
| Question: What are the biggest barriers to investing in crypto assets? | |
| Asset Volatility | 43% |
| Security and Custody Concerns | 39% |
| Lack of Regulatory Clarity | 38% |
| Lack of Trust | 36% |
| Lack of Information and Understanding | 34% |
| Lack of Regulated Service Providers | 31% |
| Lack of Liquidity | 23% |
| Lack of Market Infrastructure | 20% |
| Limited Track Record | 13% |
| Other | 3% |
Final Thoughts
Singapore has a higher crypto adoption rate than the global percentage, and the Monetary Authority of Singapore (MAS) aids its growth despite various strict regulations. However, secure custody options are less because of the need to obtain a capital market services (CMS) license to start a cryptocurrency exchange. Nevertheless, investors are optimistic about cryptocurrency and blockchain technology in general.
The Sygnum Bank’s reports are considered trustworthy, however, the motto of crypto DYOR (Do Your Own Research) should be considered when making important investment decisions. If you are an investor, the detailed report can be downloaded from the official website of Sygnum in PDF for free. Do your own thorough investigation and happy investing!