SINGAPORE - Professional and institutional investors in Singapore are looking to make cryptocurrency a bigger part of their portfolios in 2025, buoyed by better sentiments.

A poll by Singapore- and Zurich-based digital asset banking group Sygnum released on Nov 14 found that more than half, or 57 per cent, of the 121 Singapore-based respondents intend to raise their crypto allocations.

This is higher than the global average of 47 per cent.

About 65 per cent of the Singapore-based participants said they have greater risk appetite for cryptocurrencies.

The key reasons for increasing their crypto investments are the long-term investment case for digital assets and blockchain technology, portfolio diversification and yield generation.

The survey also found that the crypto industry’s lack of regulatory clarity is no longer a top barrier to entry for Singapore investors.

Only 30 per cent of respondents chose this as a primary barrier, compared with 45 per cent who cited security and custody concerns. Custody refers to the methods used to protect crypto assets from threats such as scammers and hackers.

The Future Finance 2024 survey found that 27 per cent of professional and institutional investors based in Singapore plan to hold on to their current digital asset strategies, while 2.5 per cent have plans to lower crypto holdings.

The poll was conducted at the end of the third quarter of 2024 on more than 400 global participants. These include banks, hedge funds, multi and single-family offices and asset managers from places such a...