Bitcoin ETF awareness helping to create favourable view of the cryptocurrency by investors: survey

THE approval of Bitcoin exchange traded funds (ETFs) in the US has resulted in a more favourable view of the cryptocurrency, according to a survey by crypto exchange Independent Reserve.

Of the 1,500 Singapore residents surveyed for the Independent Reserve Cryptocurrency Index, 39 per cent said they viewed Bitcoin more favourably post-ETF approval. One in four non-crypto investors also expressed a more favourable opinion, and overall, 60 per cent of Singapore residents have a favourable view of Bitcoin.

The majority of the survey respondents (51 per cent) were aware of the ETF approval, a finding that was a little surprising to Dennis Graham, group marketing director, Independent Reserve.

“It’s surprising how many people followed the ETF news,” he said.

Despite an option of a structured product to invest into Bitcoin, only 33 per cent of respondents would consider investing in the overseas ETF, with 17 per cent wanting a local option. More non-crypto owners (37 per cent) would prefer to invest via an ETF versus 11 per cent of crypto owners.

A large majority or 75 per cent would rather invest directly in Bitcoin via a crypto exchange over an ETF due to lower fees and direct access. This includes non-crypto owners at 63 per cent and crypto owners at 89 per cent.

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Bitcoin in particular is preferred over other digital assets, with 55 per cent of crypto investors preferring the cryptocurrency, and 73 per cent of them holding Bitcoin.

Long-term crypto investors have also profited, with 88 per cent of five-to-10 year crypto investors reporting profits, while 4 per cent reported losses. Crypto investors of over 10 years in duration have all reported profits.

Crypto investors are also bullish on Bitcoin as it approaches the halving, an event every four years that halves the number of coins being mined. Almost half of the respondents (48 per cent) believe that Bitcoin will be worth between US$50,000 and US$100,000 by 2030, up 16 percentage points from 2022.

A smaller number of crypto investors (30 per cent) believe that Bitcoin will be worth more than US$100,000, up 13 percentage points from 2022.

“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,” said Lasanka Perera, chief executive officer, Independent Reserve.

Differing adoption

Both the Gen Z (age 18 to 25) and Boomers (age over 55) have increased adoption of crypto. The number of Gen Zs with crypto holdings has increased from 39 per cent in 2021 to 47 per cent in 2024. This is a peak, higher than the last peak of 45 per cent in 2022.

Boomers’ adoption rate grew from 19 per cent to 30 per cent in the same period. This is also a new peak since the last one in 2022, when 24 per cent of respondents had crypto holdings.

However, Millennials (age 26 to 45) and Gen X (age 46 to 55) have pared their holdings. Respondents aged 26 to 35 with crypto holdings have dropped from 69 per cent in 2021 to 53 per cent in 2024, while respondents aged 36 to 45 have fallen from 63 per cent to 51 per cent in the same period.

Gen X with crypto holdings have fallen from 35 per cent in 2021 to 30 per cent in 2024.

Gen Z are more likely to invest in crypto versus Gen X, with 42 per cent likely to invest in the next 12 months compared to 31 per cent of Gen X likely to invest in the next one year.

Regulatory clarity has been singled out as a key issue for Gen Zs, with 51 per cent looking for more clarity around government regulation. Boomers are also looking for clarity, with 70 per cent of respondents singling it out as a key factor to building trust. Overall, the Singapore respondents’ need for regulatory clarity has fallen over the years from 65 per cent in 2021 to 59 per cent in 2024.

“The long-awaited arrival of the spot Bitcoin ETFs has supercharged the demand side for Bitcoin as billions of dollars from institutions have poured in. The trust and understanding of Bitcoin have grown significantly over the past few years, and more Singaporeans are increasing their allocations,” said Perera.