Asia-Pacific ahead of US, EU in retail crypto activity: Report
By：Claire Huang/The Straits Times/ANN
The retail trading of Bitcoin grew 6.4 per cent year-on-year in January 2025 in the Asia-Pacific region.PHOTO: REUTERS
SINGAPORE – The Asia-Pacific region is ahead of the United States and Europe when it comes to retail investors’ trading of the world’s most popular cryptocurrency, exchange Gemini said of an analysis of blockchain data.
The retail trading of Bitcoin, which is the largest digital asset by market capitalisation, grew 6.4 per cent year on year in January 2025 in the Asia-Pacific region. This data excludes trading through exchanges and leaves out exchange-traded fund (ETF) flows.
Trading of Bitcoin in the US fell 5.7 per cent from the year-ago period, while it dipped 0.7 per cent in the European Union.
Gemini and analytics firm Glassnode’s 2025 crypto trends report released on Feb 5 said data shows there has been a large growth in retail and individual trading outside the US, “suggesting a shifting dominance in retail activity between the two regions”.
US President Donald Trump had embraced the crypto industry in his 2024 campaign, and in January 2025 he ordered a cryptocurrency working group to be set up. The group is tasked with proposing new digital asset regulations and exploring creation of a national cryptocurrency stockpile.
Key US lawmakers and regulators on Feb 5 unveiled the beginning of a landmark cryptocurrency framework that prioritises stablecoin legislation to reinforce the US dollar’s dominance in global finance.
Mr Saad Ahmed, head of Gemini’s Asia-Pacific business, said that although the US market has seen strong institutional interest, the 5.7 per cent decline in Bitcoin supply growth suggests that while big investors are optimistic, retail investors may be taking a more cautious approach, possibly waiting for clearer signals from US decision makers.
He said it is worth noting that the data excludes ETF trading, which is a key driver of demand in the US.
“In contrast, Asia-Pacific’s growth reflects increasing retail participation, likely supported by clearer regulations in key markets like Singapore. This regulatory certainty may be giving investors more confidence to enter the market,” said Mr Ahmed.
The report found that while major digital assets such as Bitcoin, Ether and Solana recorded a significant rise in capital inflows in 2024, Solana has emerged as one of the fastest-growing digital asset ecosystems.
It noted that since the industry low in November 2022, when a series of crypto-related firms went bust, the price of Solana outperformed Bitcoin and Ether on 344 out of 727 trading days, which indicates the digital asset’s substantial growth and market demand.
However, Bitcoin is still the most-traded digital asset with the largest share of capital inflows, the report said.
The report also said that the derivatives markets for digital assets have grown significantly in recent years as the industry matures and institutional adoption rises.
Asked about the outlook for the industry, Mr Ahmed said the next few months will be shaped by how regulations evolve, particularly in the US.
“If the US moves towards a more crypto-friendly regulatory environment, it could encourage broader market participation and strengthen overall market confidence. This would benefit both institutional and retail investors, potentially driving further growth in both the US and Asia-Pacific.”
