The annual report by Sygnum titled Future Finance, surveyed over 400 respondents with an average of 10 years of investment experience, across institutional investors to professionals from financial institutions.
Singapore-based respondents made up 121 out of the 400 participants, and 90% of them said access to quality information and a better understanding of the asset class will encourage them to invest more or start investing in crypto. This is in contrast to the global average of 76%.
Sygnum notes that investors based in Singapore are also less likely to view the lack of regulatory clarity as a primary barrier to entry.
The top reason for investing in crypto is wanting exposure to the crypto megatrend, followed by portfolio diversification, and as a yield generation. More than 65% of investors in Singapore said they have a greater risk appetite for the asset class.
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Almost 40% cited the availability of institutional-grade products as a reason to increase their allocations.
Now, security and custody concerns are the biggest barrier for Singapore institutional adoption, followed by lack of understanding, and asset volatility.
These investors also believe that mutual funds, corporate bonds, equity and hedge funds have the greatest tokenisation potential.
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The results of this survey was published just a day after Bitcoin briefly hit a new record of US$93,000, riding on the post-Trump euphoria.
Sygnum, a digital asset bank licensed in Singapore, Switzerland, Luxembourg and the United Arab Emirates, announced in January this year that it raised more than US$40 million ($53.54 million) in an interim close of its latest funding round.
The funds raised are aimed to fund its expansion into new markets and development of B2B products. The firm says that it has grown its assets under administration to over US$4 billion with 1,700 clients from more than 60 countries, since its series B fundraise.
