A new survey reveals growing optimism among Singaporeans as Bitcoin halving and spot ETFs reshape market sentiment.
SINGAPORE: As the Bitcoin halving event approaches in April 2024, a new study from the Independent Reserve Cryptocurrency Index (IRCI) highlights a bullish sentiment among Singaporean investors. Nearly half (48%) of crypto investors in Singapore intend to increase their Bitcoin holdings over the next 12 months.
The survey also found that investors who dedicate more than 50% of their portfolios to cryptocurrencies are the most inclined to expand their Bitcoin positions. This trend is fueled by recent industry developments, including the U.S. approval of spot Bitcoin exchange-traded funds (ETFs), which has positively influenced the perception of Bitcoin for 39% of Singaporeans.
Despite local limitations, such as the unavailability of Bitcoin ETFs for retail investors, 33% of respondents expressed interest in overseas ETF offerings. Meanwhile, 75% of investors prefer direct Bitcoin investments through cryptocurrency exchanges, citing lower fees and more flexibility compared to ETF alternatives.
Growing Market Sophistication
Singapore’s IRCI score rose to 56 in 2024, signaling a gradual increase in public confidence towards cryptocurrency. While overall awareness and ownership dipped slightly, other metrics point to growing investor maturity. More than half (52%) of crypto investors have been active in the market for over three years, with many holding diversified portfolios featuring six or more cryptocurrencies.
Financial returns have also improved for Singaporean investors, with 64% reporting profits in 2024, compared to 55% in 2023. Conversely, those reporting losses dropped to 10%, a significant improvement from 26% last year.
Shifting Demographics and Optimism
Older investors (aged 55 and above) displayed resilience in their investment strategies, with 25% planning to maintain or increase their crypto holdings despite economic pressures. Younger investors, along with seasoned crypto enthusiasts, are betting on Bitcoin’s price trajectory, with nearly half (48%) forecasting a valuation of S$50,000 to S$100,000 by 2030. A confident 31% believe Bitcoin will exceed S$100,000.
Independent Reserve Singapore CEO Lasanka Perera attributed the optimism to recent advancements like the approval of spot Bitcoin ETFs. “The arrival of Bitcoin ETFs has supercharged demand, with billions flowing in from institutions. Trust in Bitcoin as a digital gold has grown significantly, reflecting its superior characteristics such as portability, divisibility, and 24/7 accessibility,” he noted.
Market Outlook for 2024
As Bitcoin’s halving event nears, the supply of newly mined Bitcoin will hit unprecedented lows, potentially driving its price to new highs. Over half (53%) of Singaporean investors plan to increase their overall crypto investments, with 45% looking to diversify into new projects.
Conducted in February 2024 by consumer insights provider Toluna, the IRCI survey captured responses from over 1,500 Singapore residents, offering an unbiased cross-section of investor sentiment in the region.
