Report: Singapore Could Become the Next "Crypto Hot Money Hub"
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Report: Singapore Could Become the Next "Crypto Hot Money Hub"
Over 60% of investors are optimistic about the 2025 market, and more than half of institutions plan to increase long-term holdings.
Navigating Web3 tides with focused insightsSource: Sygnum survey
Compiled by: Wenser, Odaily Planet Daily
Editor's note: As a "crypto hub" in recent years, Singapore has maintained a stance of being "friendly yet cautious" toward cryptocurrency regulation—possibly due to the painful experiences of local investment institutions during the FTX collapse. Despite this, cryptocurrency adoption in Singapore continues to rise gradually. An increasing number of institutional and individual investors are turning their attention from traditional finance to digital assets. Following Donald Trump’s victory in the U.S. presidential election, potential measures such as Bitcoin strategic reserves have laid a solid foundation for the development of the crypto market. As economic globalization accelerates alongside the mainstream integration of cryptocurrencies, Singapore may become the “hotspot for crypto capital” in 2025. Below is a financial survey recently released by the well-known asset management group Sygnum, translated and edited by Odaily Planet Daily with some content modified.
Singapore Investor Survey: 57% of Institutional Investors Plan to Increase Long-Term Holdings
Recently, Sygnum, a global digital asset banking group, released the results of its annual Future of Finance survey. The study assesses and analyzes key interests, market sentiment, and trading behaviors among institutional and professional investors active in the cryptocurrency market. Respondents included over 400 individuals with an average of more than ten years of investment experience, including Sygnum’s institutional clients, investors, and investment professionals from banks, hedge funds, multi-family and single-family offices, DLT foundations, funds, and asset managers. A total of 121 respondents were based in Singapore.
Gerald Goh, Co-Founder and CEO of Sygnum Asia Pacific, said: "2024 has been filled with positive developments and pivotal moments for cryptocurrencies and the broader digital asset ecosystem. One of the most significant milestones was the launch of spot Bitcoin ETFs following approval by the U.S. Securities and Exchange Commission—which greatly accelerated institutional adoption of digital assets."
The survey reveals strong enthusiasm among Singaporean investors toward crypto assets: 57% plan to increase long-term allocations to digital assets, surpassing the global average of 47%. Notably, 30% of respondents identified unclear regulatory frameworks as a primary barrier to entry, while 45% cited security and custody issues as major concerns—indicating that the crypto ecosystem has already benefited from regulatory progress. Given this context, the report aims to highlight emerging trends and shifts in sentiment among institutional investors, reflecting current market conditions and offering insights into the future trajectory of the blockchain industry.
Top 3 Reasons for Investing in Digital Assets
Regarding investment strategy, the survey shows that the majority of institutional and professional investors in Singapore are increasing their investments in cryptocurrencies, with 57% planning to boost their crypto allocations. This momentum is primarily driven by long-term confidence in macro crypto trends and diversification potential—even amid high market volatility.
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The top reason for investing in cryptocurrencies is exposure to major crypto trends (56%), followed by portfolio diversification (41%) and return on investment (39%);
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Even amid significant market fluctuations, 57% of respondents still plan to increase their crypto holdings; 65% say they have higher risk tolerance toward these assets;
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27% of respondents plan to maintain current positions, while only 2.5% intend to reduce exposure;
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37% cited the availability of institutional-grade products as a factor encouraging increased allocation.
Additionally, another research finding indicates that 63% of respondents exhibit high risk appetite toward crypto assets, suggesting that most interested participants are relatively comfortable with volatility. Meanwhile, 28% show more cautious interest, aiming to invest from a neutral standpoint. Among the 17% who currently do not invest in crypto, most display low-to-moderate risk tolerance and frequently cite lack of trust in on-chain environments and asset volatility as key concerns. Over a quarter are open to future crypto allocations, half remain undecided, and 20% have no plans to invest at all.
Strong Demand for Asset Class Information
Singaporean investors are calling for higher-quality information and deeper understanding of digital assets.
Compared to the global average of 76%, a striking 90% of Singaporean investors stated: "Access to high-quality information and better understanding of this asset class would encourage me to increase or initiate crypto investments."
Institutional Barriers to Entry
Notably, while regulatory clarity has improved, security and custody issues now represent the biggest obstacle to institutional crypto adoption in Singapore, cited by 45% of respondents. Lack of effective information and insufficient understanding follow closely at 41%, with asset volatility also ranking third at 41%. The significant improvement in regulatory clarity brought about by U.S. spot Bitcoin and Ethereum ETFs has boosted confidence among institutions considering entering the space—but market education remains critical.
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75% of respondents believe regulatory clarity has improved;
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73% say crypto ETFs have strengthened their confidence in the asset class;
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90% indicate that more comprehensive and reliable information would prompt them to allocate more capital.
Cryptocurrency Investment Preferences
Layer 1 blockchains and Web3 infrastructure are currently the most attractive areas for cryptocurrency investment, driven largely by trends such as DePIN (Decentralized Physical Infrastructure Networks) and AI.
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The top three investment areas of interest among Singaporean investors are L1 blockchains (71%), Web3 infrastructure (56%), and L2 solutions (41%);
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Assets perceived as having high tokenization potential include mutual funds (47%), corporate bonds (47%), equities (40%), and hedge funds (39%);
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In terms of preferred investment strategies, actively managed investments targeting excess returns lead at 41%, followed by passive yield-generating strategies (37%) and sector exposure in targeted growth industries (36%).
Moreover, 91% of respondents reported primarily investing in blockchain protocol tokens such as Bitcoin and Ethereum. This reflects an overwhelming preference for mature assets perceived as less volatile and backed by traditional institutions. This interest extends to competing L1 platforms such as Solana and BNB Chain—decentralized smart contract platforms and ecosystem infrastructures.
Half of the respondents hold stablecoins, leveraging their non-volatility as a hedging tool and as a "primary gateway" into the crypto market. Interest in stablecoins has grown steadily over the past year, likely due to increasingly mature regulatory frameworks for stablecoins and underperformance of many DApp-related tokens compared to mainstream assets like Bitcoin and Solana.
Notably, portfolio composition and investment strategies are becoming increasingly diversified: nearly 40% of respondents invest in decentralized application (DApp) tokens, 39% in NFTs, and only 13% exclusively in L1 protocol tokens.
Finally, the study suggests that if market conditions improve, investors currently planning to maintain their existing allocations may quickly increase exposure—46% plan to boost their investments within the next six months, and over 60% express optimism about crypto market investment prospects for 2025.
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