- The Sygnum Future Finance survey shows 57% of institutional investors in Singapore plan to increase long-term crypto allocations, compared to the survey average of 47%
- More than 100 institutional and professional investors from Singapore participated in this year's survey
- The lack of regulatory clarity is no longer a top primary barrier to entry for Singapore investors. Only 30% of respondents chose this as a primary barrier compared to 45% who cited security and custody concerns
Conducted among over 400 respondents possessing an average of 10+ years of investment experience, the survey included Sygnum's institutional client base and investors as well as a diverse set of investment professionals from banks, hedge funds, multi- and single-family offices, DLT foundations, funds, and asset managers. A total of 121 Singapore-based respondents participated in the survey.
"2024 was full of positive new developments and watershed moments for crypto and the broader digital asset ecosystem. Among the most important are perhaps the US SEC's approval and the subsequent launch of Bitcoin ETFs, which massively accelerated institutional adoption of digital assets," said Gerald Goh, co-founder and CEO APAC.
"The survey shows that Singapore's investors remain excited about the asset class with 57% of them planning to increase their long-term allocations, compared to the survey average of 47%. Of note, investors here are also less likely to view the lack of regulatory clarity as a primary barrier to entry (30%). This signals that the ecosystem has benefitted from the progress we have made here on the regulatory front. This is why we're pleased to present Sygnum's Future Finance 2024 survey report, which highlights these new trends and sentiment shifts among institutional investors, both to serve as a pulse to check on the current state of the market as well as offer a glimpse into the future of the blockchain industry as a whole."
Reasons for Investing in Digital Assets
Regarding investment strategies, the survey revealed that most institutional and professional investors in Singapore are doubling down on their crypto investments, with 57% of respondents planning to increase their allocations. This is driven by their long-term confidence in the crypto megatrend and its potential for diversification, even despite high market turbulence.
- The top reason for investing in crypto is wanting exposure to the crypto megatrend (56%), followed by portfolio diversification (41%) and as yield generation (39%)
- Even with the current market chop, 57% plan to increase their crypto allocations. 65% said they have a greater risk appetite for the asset class
- 27% plan to maintain their positions, and only 2.5% plan to decrease
- 37% cited the availability of institutional-grade products as a reason to increase their allocations
Singapore investors want better quality information and a deeper understanding of digital assets. Compared to the global average of 76%, 90% of Singapore investors said access to quality information and a better understanding of the asset class will encourage them to invest more or start investing in crypto.
Institutional Barriers to Entry
Notably, the report also revealed that while regulatory clarity has improved, security and custody concerns is now the biggest barrier at 45% to institutional crypto adoption in Singapore. Lack of information and understanding is at 41% while asset volatility came up third at 41%. Improved regulatory clarity and confidence from US spot Bitcoin and Ether ETFs encourage more institutional investment, but market education remains critical. This can be due to the regulatory environment improving and more confidence in the market and the asset class itself.
- 75% said they believe that regulatory clarity has improved
- 73% noted that crypto ETFs have increased their confidence in the asset class
- 90% said that better information would lead them to invest more
Layer-1 solutions and Web3 infrastructure have emerged as the most attractive crypto investment areas, fueled by trends like DePIN and AI.
- Primary sectors of interest for Singapore investors are Layer 1 (71%), Web3 infrastructure (56%) and Layer 2 (41%)
- They believe that mutual funds (47%), corporate bonds (47%), equity (40%) and hedge funds (39%) have the greatest tokenization potential
- Preferred investment strategies include actively managed exposure (41%) to generate alpha, followed by passive market exposure (37%), and sector exposure (36%) to capture targeted growth areas
About Sygnum
Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage. We empower professional and institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust. Our team enables this through our institutional-grade security, expert personal service and portfolio of regulated digital asset banking, asset management, tokenization and B2B services.
In Switzerland, Sygnum holds a banking license and has CMS and Major Payment Institution licences in Singapore. The group is also regulated in the established global financial hubs of Abu Dhabi, Luxembourg and Liechtenstein.
We believe that the future has heritage. Our crypto-native team of banking, investment and digital asset technology professionals are building a trusted gateway between the traditional and digital asset economies that we call Future Finance. To learn more about how Sygnum's mission and values are shaping this digital asset ecosystem, please visit sygnum.com and follow us on LinkedIn and X.
Disclaimer
This document was prepared by Sygnum Pte. Ltd. This document may contain forward-looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Pte. Ltd., its affiliates, and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Pte. Ltd. to purchase or sell assets or securities. It is not intended to be used as a general guide to invest and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Pte. Ltd. makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.