Investor interest in Bitcoin surged globally in 2024, fueled by the launch of exchange-traded funds (ETFs) and the outcome of the U.S. presidential election. Market observers anticipate that the world’s largest cryptocurrency will continue to grow in popularity among both retail and institutional investors.
Bitcoin ETFs Spark a Frenzy
The introduction of spot Bitcoin ETFs in January 2024 marked a pivotal moment for the cryptocurrency market. Eleven such ETFs received approval from the U.S. Securities and Exchange Commission (SEC), setting off a wave of investor enthusiasm. According to DBS foreign exchange and credit strategist Chang Wei Liang, this regulatory green light significantly boosted demand.
Crypto.com reported that Bitcoin ETFs saw net inflows for nine out of 11 months in 2024, accumulating total net assets of $30.7 billion by late November. BlackRock’s iShares Bitcoin Trust emerged as a standout performer, amassing over $50 billion in assets within just 11 months—a record-breaking debut, as highlighted by Bloomberg.
Bitcoin’s price mirrored this momentum, climbing by 111.8% to close the year at $93,619.80. It surged past $100,000 for the first time on December 5, following U.S. President-elect Donald Trump’s victory in November. Known for his pro-crypto stance, Trump has vowed to make the United States the “crypto capital of the planet” and plans to establish a national Bitcoin reserve.
Singapore’s Role in the Global Boom
Brokerages and exchanges in Singapore reported unprecedented activity in Bitcoin trading throughout 2024. Moomoo Singapore CEO Gavin Chia observed a 200% increase in Bitcoin ETF trading volume in November compared to the previous month. Notably, more than half of the platform’s crypto traders last year were Singaporeans.
Phillip Securities also experienced heightened client interest. “By the end of last year, our clients’ assets under custody in Bitcoin ETFs grew to nearly 3% of the overall AUC across all ETFs,” said Jason Fu, deputy head of global markets.
Digital platforms followed suit. Tokenize Xchange reported a staggering 1,900% year-on-year growth in total trading volume. “Bitcoin trading volumes were a major contributor, increasing nearly 900%,” said CEO and founder Hong Qi Yu. Similarly, Coinhako co-founder Liu Yusho described 2024’s Bitcoin accumulation as “unprecedented,” with a 500% rise in retail user activity following Bitcoin’s breakout in November and December.
Institutional and Retail Participation Surge
High-net-worth individuals and institutions played a larger role in Bitcoin’s rally compared to previous cycles, noted DBS Digital Exchange CEO Lim Wee Kian. Meanwhile, optimism over institutional adoption and regulatory clarity following Trump’s election spurred retail participation.
“This activity is likely driven by increased optimism over institutional adoption and anticipation of a more conducive regulatory environment,” Liu added.
Despite the Monetary Authority of Singapore’s restrictions on retail access to spot Bitcoin ETFs, many investors remain undeterred. Collin Seow, founder of trading community Systematic Trader, remarked that savvy investors often turn to U.S. markets for Bitcoin ETFs, likening the trend to gold ETF investments.
The Road Ahead for Bitcoin
Analysts predict further growth in Bitcoin’s value amid evolving regulatory frameworks. FalconX’s general manager for Asia-Pacific and the Middle East, Matt Long, described the current period as a “golden era” for digital asset adoption, driven by supply constraints and increasing demand.
Chainalysis’ head of Asia-Pacific policy, Ong Chengyi, echoed this sentiment, forecasting that rising prices and improved regulatory clarity would attract greater participation from traditional financial players. “Should Bitcoin continue to rise, it is reasonable to expect some of the resulting demand will be channelled into ETFs,” Ong said.
While challenges persist, market watchers remain optimistic. DBS’ Chang speculated that under Trump’s presidency, Bitcoin’s price could potentially reach $200,000, bolstered by a more permissive regulatory environment.
As the cryptocurrency market matures, platforms like Tokenize Xchange foresee more first-time investors entering the space. “As regulatory clarity improves and market confidence grows, we anticipate more people returning to brokerages like ours to trade crypto,” Hong said.
