Bitcoin halving event sparks interest in Singaporean investors: report

With no offerings of Bitcoin ETFs in the city-state, retail investors set sights overseas.

Ahead of the upcoming Bitcoin halving event this month, nearly half or 48% of crypto investors in Singapore are set to double down on Bitcoin in the next 12 months, according to a report by Independent Reserve.

Those holding more than 50% of their portfolio in crypto are the ones most likely to increase Bitcoin holdings (68%). Singaporeans have shown greater interest in crypto following the recent policy developments in the sector, including the US SEC’s approval of Bitcoin exchange-traded funds (ETFs) which more than half of the respondents were aware of.

The survey showed 39% now view Bitcoin favourably and 33% are more open to investing overseas as product offerings are not available in the city-state.

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

Historically a catalyst for a crypto bull market, the halving event occurs approximately every four years where Bitcoin miner rewards are halved, potentially seeing upwards of a 10-fold increase in value. During the 2020 halving event, Bitcoin saw a 7.5x price hike. 

Singaporeans expressed optimism on the price, with nearly half (48%) expecting Bitcoin to be worth between $50,000 and $100,000. Close to one-third (31%) have already invested, confident prices will hit more than $100,000.

“With the halving on the horizon, the supply of newly mined Bitcoin will reach an all-time low,” Perera said. “This sharp decline in the supply will most likely see Bitcoin's price break all-time highs, many times throughout the year.” 

However, due to lower fees and wider trading options, three-fourths (75%) would still prefer to invest in Bitcoin directly through a cryptocurrency exchange rather than through a Bitcoin ETF offering.

To date, 65% of the first crypto purchases in the city-state invested more than $500, with around 41% still investing more than $500 a month to their portfolio.

The report also showed Singapore scored 56 on the Independent Reserve Cryptocurrency Index this year, up one from last year, showing a “growing sense of confidence and optimism in the market.”