Robust and transparent regulations are crucial in ensuring the sustainable growth of digital assets, a new report finds.

Crypto investors have remained resilient during the market downturn, according to the 2024 Global State of Crypto released by Gemini, the crypto exchange co-founded in 2014 by twin brothers Cameron and Tyler Winklevoss. The report was based on a survey of over 6,000 participants from regions including the United States, the United Kingdom, France, and Singapore.

Crypto adoption has been steady across the US (21%) and the UK (18%) from 2022 to 2024. The number of crypto owners in France (18%) rose slightly from 2022 (16%), while in ownership dropped slightly in Singapore from 30% to 26%.

As the Southeast Asian market continues to mature, the survey finds that clear regulations will be a crucial factor to unlocking further growth in the sector.

Price gains spur confidence

Despite this challenge, however, the report finds that Singapore remains a stronghold for cryptocurrency innovation, with a significant portion of the population poised to re-enter the crypto market.

Non-owners of crypto in the US and UK cited regulatory concerns (38%) as a barrier to investing in crypto. In France, nearly one in three (32%) said the same, and in Singapore nearly half (49%) of respondents said crypto regulations were a concern.

More than 70% of past crypto owners in Singapore expressed interest in re-entering the market within the next year, suggesting some optimism amid recent global crypto gains.

In addition, 65% of current crypto owners across all surveyed regions, including Singapore, said they maintain a long-term investment strategy, holding crypto as a potential hedge against inflation as well as for its growth potential.

The introduction of spot bitcoin ETFs in the US has contributed to this renewed interest, with institutional investors pushing bitcoin to a new all-time high of US$73,737.94 in March 2024.

Crypto a US election issue

While price volatility and market losses were the top reasons investors exited the crypto market during the downturn of 2022, the report suggests a shift in investor sentiment as markets stabilize.

In Singapore, only 10% of crypto owners sold their assets in the past six months, down from 49% who did more than a year ago, indicating a growing confidence in the market's future.

The report also reveals that the majority of crypto owners want to allocate 5% or more to digital assets, while the majority (57%) of crypto owners say they are comfortable making crypto a core part of their investment portfolio.

The split between male and female ownership was slightly more pronounced in 2024 compared to 2022, with 69% of crypto owners identifying as male and 31% identifying as female, compared with 58% and 42% respectively in 2022. However, women are just as likely as their male counterparts to buy and hold for the long term.

Crypto has now also become a US election issue for the first time. After years of questioning the asset, former president Donald Trump has now warmed to digital assets, pledging to make the US the “crypto capital of the world”.

The vast majority of crypto owners in the US (73%) plan to consider a candidate's views towards digital assets when they vote for the next president, the survey finds.