Investing in Crypto in Singapore: New Research from BBH

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    • Advertising firm BBH Singapore found that one in three Singaporean investors in a survey had invested in crypto.
    • Despite the crash, their outlook is positive, with 65% saying they will continue to invest in crypto assets.
    • This article is part of “Master Your Crypto”, an Insider series helping investors improve their cryptocurrency skills and knowledge.

Despite feeling the bite of the crypto winter, Singaporean investors remain staunchly optimistic about the future of cryptocurrency, as a broad survey by advertising agency BBH Singapore suggests.

Sid Tuli, the company’s chief executive, said he and his team were “shocked” by the results.

“The impact of the crypto crash was far greater than expected – one in three Singaporeans invested in crypto, and one in six of those crypto investors said they lost so much money that it seriously affected their life,” he said.

In the survey of Singaporean investors, 65% of respondents said they remain positive about cryptocurrency and will continue to invest in crypto-related assets over the next three months.

BBH Singapore operates across Southeast Asia, advises United Overseas Bank – one of the region’s largest banks – and has a client list dotted with heavy hitters like Nike, Riot Games and Samsung.

To accurately advise clients on upcoming projects, he sought to uncover Singaporeans’ sentiments towards cryptocurrency by commissioning the research project, which consisted of 1,000 interviews with investors in May and June. The big takeaway: Crypto has grown exponentially in Singapore, becoming the second most popular asset for investors, after stocks.

Singapore has long been a rising regional star in the cryptocurrency world. Today, the overall cryptocurrency market plunged 50% from its November peak of $2 trillion. But last year, the last year with data, Singaporeans were estimated to hold $1.48 billion in crypto assets, according to KPMG, firmly establishing the island state as the crypto capital of Asia.

The Singapore Cryptocurrency Landscape

“Our job is to really understand what people are feeling and what drives those feelings,” said Faraaz Marghoob, BHH Group chief strategy officer who led the research. “Oftentimes, emotions drive the logic of investors. It’s not the other way around.”

According to Marghoob, money plays a special role in Singapore’s culture.

“If Catholic guilt is the currency of being Catholic, prosperity is the currency of being Asian. Money is important. Being rich is important,” he said. For this reason, Asian markets tend to be more conservative and risk-averse when it comes to spending, he added, saying, “But on the other hand, they will dive into new technologies.” .

This is exactly what happened at the start of the pandemic, when, according to researchers, more Singaporeans started trading than ever before. Data showed that 51% of investors bought into the asset class in the past two years alone, driven by the social aspects of cryptocurrency communities, which provided much-needed comfort during shutdowns, as well as the economic uncertainties of living with COVID-19.

BBH Singapore also found that just under half of all cryptocurrency investors had at best a basic understanding of it, and another half said they had no understanding of blockchain.

Unsurprisingly, BBH found that the majority of investors were younger – with 61.8% of respondents who owned cryptocurrency in Singapore under the age of 35. What the research team didn’t expect to find was that when seniors invested, they adopted a high-stakes strategy. approach. One in four Singaporean crypto investors over the age of 45 who took part in the survey said they spent more than 50% of their portfolio on it, indicating that investors were likely using it as a way to shore up their pensions.

“Some people saw it as a shortcut,” Marghoob said. “The future is hard to predict, and from our research, we know that people are inherently nervous about it. People no longer know if their work is going to be relevant, so anything that can give them a sense of security about their future is really emotionally appealing.”

Crypto and Web3 are here to stay

“Despite the recent crash, enthusiasm for crypto investments remains relatively strong, with the majority of investors still believing that cryptocurrency is the future of money and that the value of their crypto assets will only increase. over time,” Tuli, the general manager of BHH, said.

In June, 69% of survey respondents agreed that cryptocurrency was the future of money – interestingly, that number had increased by 11% in the space of a month.

Cryptocurrency’s hold on Singapore’s financial world is also reflected in online searches in the country. According to keyword research platform Semrush, searches for “crypto recovery” have soared 9,900% between January 2019 and today, and searches for “crypto memes” in the country continue to rise.

While he cannot share specifics, Tuli said conversations with his clients on Web3, cryptocurrency and the metaverse are ongoing.

“The crash doesn’t mean it’s just a fad,” Tuli said, adding, “Web3, Blockchain and crypto are real and here to stay.”

This article is intended to provide general information designed to educate a broad segment of the public; it does not provide personalized investment, legal or other business and professional advice. Before taking any action, you should always consult your own financial, legal, tax, investment or other professional for advice on matters affecting you and/or your business.

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