Market value of digital asset market reaches RM21 billion in 2021
KUALA LUMPUR: The domestic digital asset market continued to grow in 2021 despite market uncertainties following the pandemic, with around RM21 billion worth of digital assets traded on the four registered digital asset exchanges (DAX).
The Securities Commission Malaysia (SC) said investor interest had boosted the total number of investment accounts by almost 300% to around 760,000 last year, from more than 190,000 in 2020.
“Investors under the age of 35 were the largest segment at 62%, holding more than 470,000 accounts at the end of 2021,” he said in his 2021 annual report released today.
The SC said it continued to facilitate the introduction of new digital assets to trade on the DAX last year, with the approval of Bitcoin Cash (BCH) in March 2021 as an additional authorized digital asset.
Other digital assets allowed to be traded on DAX include Bitcoin, Ripple, Ethereum, and LiteCoin.
According to the report, the digital investment management (DIM) segment has further expanded its capital market offerings with total assets under management (AUM) of over RM1 billion at the end of 2021.
“Increased retail interest in the stock market during the pandemic has also pushed digital brokers to new heights, gaining a retail market share of 5.45% as the total number of accounts increased by more than 50% to reach approximately 251,000 in 2021 (2020: over 165,000),” the regulator said.
The DIM segment has been successful in attracting and serving younger demographics of investors, with more than 70% of individual investors participating in DIM comprising people under the age of 35 and attracting participation from new investors, the SC said.
“The emergence of spare currency investing, where spare currencies from investor purchases are rounded up and invested in funds, has also made it easy for investors to start investing with small investment amounts” , he added.
Another DIM company was licensed in 2021, bringing the number of DIM companies currently in operation to eight. – Bernama