Being a crypto-friendly nation has paid off in the matters of adoption in Singapore, according to a new study. The study conducted by Gemini crypto exchange in partnership with CoinMarketCap and Seedly stated that more than two-thirds of Singaporeans that have financial investments currently hold some crypto.
The study dubbed “The State of Crypto in Singapore Report 2021” noted that about four in five Singaporean crypto owners have Ether, followed by Bitcoin, Cardano, and then Binance Coin.
This report sampled 4,348 Singapore-based adults who self-identified as having or being to some extent interested in personal finance and investment products, shows that 67% of the respondents today own crypto assets.
While one in five crypto holders are women, this study profiles the average Singaporean cryptocurrency holder as a:
“29-year-old male with an average annual household income of about 51,968 Singapore dollars ($38,456) a year.”
Regarding the distribution of crypto assets that are held by the Singaporean investors, Ether (ETH), which is the native crypto of the Ethereum blockchain, takes some lead with 78% as the most popular crypto, while 69% of the crypto holders own Bitcoin (BTC).
Binance Coin (BNB) and Cardano (ADA) follow the top two at 31% and 40%, respectively. One in four investors hold Tether (USDT) and XRP, according to the survey. The report indicates that people’s interest in cryptocurrency increased partially due to the COVID-19 pandemic, as 67% of the cryptocurrency holders invested some more during the pandemic to hedge against inflation or invest their increased disposable incomes due to the lockdowns.
On the flip side, a lack of knowledge and understanding is the leading factor that deters non-crypto owners from investing in the assets class. The volatility of cryptocurrency markets, the risky nature of crypto investments, and the lack of regulatory oversight were also noted as barriers to making investments.
Another study with a smaller sampling group recently revealed that 46% of Singaporeans plan to acquire digital assets in the coming 12 months. Notably, with a zero capital gains tax on crypto income, Singapore set itself up as a hub for crypto and blockchain in the Asia Pacific region.