Singaporean investors are showing increasing enthusiasm towards Bitcoin, with a significant portion planning to boost their holdings in the coming year, according to reports from Independent Reserve. This surge in confidence comes in the wake of recent developments, including the approval of Bitcoin Exchange-Traded Funds (ETFs) in the United States and the anticipation of the Bitcoin halving event in April.
Independent Reserve: Bitcoin ETFs Fueling Optimism
The approval of Bitcoin ETFs in the US has had a profound impact on Singaporean investors’ perception of the digital asset. According to surveys conducted by Independent Reserve, 39% of respondents now view Bitcoin more favorably following the ETF approval. This sentiment is reflected in the growing awareness of ETFs, with 51% of respondents being aware of the SEC’s approval.
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Dennis Graham, marketing director at Independent Reserve said:
“It’s surprising how many people followed the ETF news.”
Direct Investment Preferred
Despite the availability of Bitcoin ETFs, a majority of Singaporeans (75%) express a preference for investing directly in bitcoin through digital asset exchanges. This preference is driven by factors such as lower fees and the wider range of trading options offered by the exchanges.
Related reading: Bitcoin ETFs Provide Convenient Price Exposure, But At What Cost?
Lasanka Perera, CEO of Independent Reserve Singapore said:
“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.”
Perera highlights the importance of recent developments, particularly the introduction of spot Bitcoin ETFs. He notes that this has greatly increased demand for bitcoin, with billions of dollars flowing in from institutional investors. He also mentions a growing trust and understanding of Bitcoin among the public, leading to more Singaporeans increasing their investments in the the scarce digital asset.
Bitcoin Halving Anticipation
With the Bitcoin halving event looming, anticipation among Singaporean investors is palpable. Almost half of the respondents (48%) believe that bitcoin will be worth between $50,000 and $100,000 by 2030. This optimism is further reflected in the plans of 48% of digital asset investors to double down on Bitcoin in the next 12 months.
Perera stated:
“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.”
Generational Trends
The survey also highlights interesting generational trends among Singaporean investors. While Gen Z investors show a strong inclination towards bitcoin investments, with 42% likely to invest in the next 12 months, Boomers are also making significant strides in adopting Bitcoin, with 25% intending to maintain or increase their allocations.
Increased Sophistication in Investment Strategies
The findings from the Independent Reserve Cryptocurrency Index (IRCI) indicate a growing sophistication in Singaporean investors’ strategies. A significant portion (52%) of respondents have been involved in the market for over three years, signaling a maturing investor base. Moreover, 64% of digital asset owners reported making profits, reflecting a deeper understanding of the market dynamics.
Lasanka Perera highlighted:
“This year’s IRCI findings also mirror the longer-term optimism towards cryptocurrency investing in Singapore – the industry is now filled with positive energy leading up to the Bitcoin halving event and what lies beyond. Seasoned Singaporean crypto investors are showing more sophistication as they diversify their portfolios, dollar-cost average, and tactically take profit. This is fantastic to see as it highlights a growing understanding of this asset class.”
Resilience Amid Economic Uncertainties
Despite economic uncertainties and rising interest rates, a considerable number of Singaporean investors remain undeterred. Around one-third (29%) plan to sustain or increase their investments in digital assets, underscoring their confidence in their long-term potential.
Conclusion
As Singaporean investors gear up for the Bitcoin halving event and embrace the opportunities presented by Bitcoin ETFs, the Bitcoin market in Singapore continues to evolve rapidly. With growing awareness, increasing sophistication in investment strategies, and bullish sentiment towards Bitcoin’s future, Singapore remains at the forefront of adoption and innovation.
