The current macro landscape presents a fascinating juxtaposition of caution and exuberance, where geopolitical friction and fiscal paralysis coexist with a surge in risk appetite driven largely by artificial intelligence optimism and institutional crypto adoption.

At the heart of this duality lies the extended US government shutdown now in its sixth day, a development that would typically trigger risk-off behaviour across global markets. Yet investor sentiment has not only held firm but advanced, propelled by a confluence of factors that underscore a deeper structural shift in how capital allocates across traditional and digital assets.

Wall Street’s mixed performance on Monday reflects this nuanced environment. The Dow Jones Industrial Average edged lower by 0.1 per cent, signalling lingering unease among industrial and legacy sectors. In contrast, the S&P 500 climbed 0.4 per cent and the Nasdaq surged 0.7 per cent, both reaching new all-time highs. This divergence is not random. The rally in chipmakers, companies at the epicentre of AI infrastructure development, has become the primary engine of equity market gains.

Investors are betting that the AI boom is not a fleeting narrative but a multi-year secular trend, and they are positioning accordingly. This tech-led optimism has spilt over into other risk assets, including cryptocurrencies, which posted a 1.43 per cent gain over the past 24 hours, extending weekly and monthly advances of 8.76 per cent and 12.58 per cent, respectively.

Simultaneously, traditional safe-haven assets are also rallying, which at first glance seems contradictory. Gold surged 1.9 per cent to a record high of USD3961 per ounce. This move is directly tied to the US government shutdown, which has injected fresh uncertainty into the coordination of fiscal and monetary policy. With Congress unable to pass a budget, questions linger about the government’s ability to manage debt, respond to economic shocks, or even maintain consistent data reporting, all of which erode confidence in the US dollar as a stable store of value.

The US Dollar Index rose modestly by 0.4 per cent to 98.11, but this uptick appears more technical than fundamental, especially as Treasury yields climbed amid global bond market turbulence. The 10-year yield rose 3.3 basis points to 4.152 per cent, pressured by soaring long-end Japanese yields and political instability in Europe. These crosscurrents illustrate how investors are simultaneously hedging against systemic risk while pursuing growth in high-conviction themes, such as AI and digital assets.

Also Read: How fiat and crypto are redefining cross-border payments

The crypto market’s recent strength cannot be divorced from this macro backdrop. Institutional demand has emerged as the dominant force behind the rally, with spot Bitcoin ETFs recording US$627 million in inflows over a 24-hour period and Ethereum ETFs adding US$307 million. Total assets under management in Bitcoin ETFs now stand at US$161.6 billion, while Ethereum ETFs hold US$25.73 billion. These are not speculative retail bets but deliberate allocations by traditional finance players who increasingly view crypto, particularly Bitcoin, as a macro hedge akin to gold.

The correlation between crypto and gold over the past 24 hours reached 0.74, a striking signal that both assets are being used interchangeably as hedges against inflation and policy uncertainty. This institutional embrace is occurring against a backdrop of cooling inflation data and growing expectations of Federal Reserve rate cuts in 2025, which lowers the opportunity cost of holding non-yielding assets like Bitcoin and gold.

The rally is not solely driven by fundamentals. Derivatives markets are amplifying price action through a surge in leveraged activity. Perpetual futures volume spiked 53.7 per cent to US$1.71 trillion in 24 hours, with funding rates jumping 475 per cent on a weekly basis to 0.0083 per cent. Binance alone accounted for 87 per cent of Bitcoin futures taker volume, underscoring its outsized role in price discovery.

While this derivatives frenzy fuels momentum, it also introduces fragility. Open interest, though near yearly highs, declined 1.24 per cent over the past day, a potential early warning sign of profit-taking or de-leveraging. With the 14-day Relative Strength Index for Bitcoin at 73.3, the market is entering overbought territory, increasing vulnerability to sharp corrections if sentiment shifts.

Adding another layer to this dynamic is the performance of Binance ecosystem tokens, which rose 0.97 per cent in 24 hours and 8.76 per cent for the week. BNB hit an all-time high of US$1,190, supported by the exchange’s record US$2.55 trillion in monthly futures volume and the launch of new AI-powered trading tools.

Binance’s dominance, capturing 41 per cent of global spot trading, provides a sense of stability to the broader crypto market, as its operational strength reassures participants during periods of macro stress. However, this leadership masks underlying retail fatigue. Active addresses across major blockchains have declined by 57 per cent since June, suggesting that while institutions and sophisticated traders are driving volume, everyday users remain on the sidelines. This dichotomy raises questions about the sustainability of the rally if it remains confined to professional players.

Also Read: From Tokyo to crypto: How political shifts and policy bets are reshaping global markets

Looking ahead, several key inflection points could reshape the current trajectory. The most immediate is the October 18 decision on Grayscale’s Ethereum ETF application. An approval would likely unlock another wave of institutional capital, particularly from firms that have thus far remained cautious about direct crypto exposure.

Conversely, a rejection could trigger a short-term pullback, especially if it coincides with a slowdown in ETF inflows or a reversal in tech stock momentum. The Nasdaq’s performance remains critical, given the 0.72 correlation between crypto and the tech-heavy index. Should volatility return to US equities, perhaps triggered by renewed inflation concerns or a deeper fiscal crisis, the crypto market may struggle to decouple.

In sum, today’s market moves reflect a delicate balance between fear and greed, where institutional confidence in digital assets as a legitimate macro hedge is colliding with leveraged speculation and geopolitical uncertainty. The US government shutdown, rather than derailing risk appetite, has reinforced the case for alternative stores of value.

The very forces driving gains, ETF inflows, derivatives leverage, and exchange dominance, also create conditions for heightened volatility. As we navigate this complex environment, the interplay between traditional macro drivers and crypto-specific catalysts will determine whether this rally evolves into a sustained bull market or unravels under the weight of its own momentum.

For now, the data suggests that institutional adoption has fundamentally altered crypto’s role in the global financial system, transforming it from a fringe asset into a core component of modern portfolio construction.

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At Echelon Singapore 2025, Walter Oude, founder and CEO of Chocolate Finance, shared the company’s journey of resilience in the face of early challenges. Chocolate Finance positions itself as a modern asset management firm offering higher returns than traditional banks without exposure to the risks of bank failures.

Oude recounted a pivotal moment when the company launched a debit card featuring an ambitious mileage rewards program. While designed to enhance customer value, the initiative backfired as user confusion and dissatisfaction triggered withdrawals. Despite the turbulence, Chocolate Finance upheld its promise of competitive returns and safeguarded customer funds, showcasing both financial and operational resilience.

The episode became a turning point that reinforced the importance of transparency, simplicity, and customer education in financial innovation. By addressing concerns head-on and communicating more clearly, the company began to rebuild trust. Today, Chocolate Finance reports a steady return of customers, drawn by consistent yields and a reputation for reliability. Oude’s story highlighted how even in fintech, sustainable growth depends on learning from missteps, maintaining integrity, and staying focused on long-term value creation.

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Singapore’s digital economy continued to strengthen in 2024, reaffirming its role as a key pillar of national growth. According to the Singapore Digital Economy Report 2025, the country’s digital sector not only grew faster than the overall economy but also showed deeper integration of artificial intelligence (AI) across enterprises and the workforce.

In 2024, Singapore’s digital economy reached a nominal value added (VA) of S$128.1 billion, contributing 18.6 per cent of gross domestic product (GDP). This marked an increase from 18.0 per cent in 2023, underscoring the steady expansion of digitalisation across industries.

Between 2019 and 2024, the digital economy grew at a compound annual growth rate (CAGR) of 12 per cent, outpacing the overall GDP growth rate of 7.3 per cent during the same period. This sustained momentum illustrates the country’s continued success in harnessing technology as a driver of innovation and competitiveness.

Interestingly, the bulk of digital economic activity came from digitalisation within non-tech sectors. In 2024, digitalisation in industries outside the Information and Communications (I&C) sector accounted for two-thirds of total digital economy value, or 12.6 per cent of GDP.

The Finance and Insurance, Wholesale Trade, and Manufacturing sectors were key contributors to this expansion, reflecting how traditional industries are embedding technology at every level. The I&C sector, meanwhile, accounted for the remaining six per cent of GDP.

Also Read: AI dreams, crypto magic and shutdown realities: The contradictions fuelling today’s market rally

AI adoption reaches new highs

The report highlights a striking surge in AI adoption across both firms and workers in 2024. Among non-small and medium enterprises (non-SMEs), AI adoption jumped from 44.0 per cent in 2023 to 62.5 per cent in 2024. This surge points to a growing confidence in deploying AI for productivity, decision-making, and innovation.

More notably, SME adoption tripled, rising from just 4.2 per cent to 14.5 per cent within a year. This rapid uptake was driven largely by off-the-shelf generative AI (Gen AI) tools, which have lowered the barrier for smaller firms to integrate AI into daily operations.

The Information and Communications and Professional Services sectors led the charge, with adoption rates of 35.9 per cent and 25.7 per cent respectively. Across AI-using firms, the technology was most commonly applied in Information Technology (49 per cent), Customer Service (43 per cent), and Finance and Accounting (40 per cent) functions.

Looking ahead, companies plan to deepen their AI capabilities by investing in workforce training (68 per cent), job redesign (63 per cent), and AI-related infrastructure (59 per cent). These priorities signal a proactive shift from experimentation to long-term capability building.

AI adoption is not limited to organisations. The report found that nearly three in four workers (73.8 per cent) used AI tools in their jobs, with most engaging them daily or several times a week.

Also Read: The missing link in AI: Why clean, verifiable data is the new oil for enterprises

Workers reported leveraging AI for brainstorming and ideation (58 per cent), writing and editing (54 per cent), and administrative tasks (42 per cent). The findings indicate that AI is increasingly used beyond routine automation, supporting both cognitive and creative processes.

The benefits were widespread: 85 per cent of AI users cited improved efficiency, productivity, and work quality. Nearly half (48 per cent) said AI enhanced their creativity, while a third (33 per cent) found it helpful for learning and skill development.

Employers have also played a crucial role in supporting this shift. Around 70 per cent of AI-using employees received organisational backing, primarily through training programmes (62 per cent), access to paid AI tools (42 per cent), and usage guidelines (30 per cent). This structured support has enabled more workers to use AI confidently and responsibly.

As Singapore’s digital economy matures, the findings from the 2025 report reveal a country in transition. One where the benefits of technology are extending beyond tech companies to the wider business community and workforce.

The next phase of growth will depend not just on technology adoption but also on developing a future-ready talent base. With strong emphasis on digital literacy, reskilling, and inclusive access to AI tools, Singapore is positioning itself as a leader in both digital innovation and sustainable economic transformation.

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Singapore VC funds have become the go-to for savvy fund managers who want access to Asia’s booming startup scene without drowning in red tape. With a pro-business environment, clear regulations, and attractive tax incentives, Singapore makes it founder-friendly to launch and scale a fund.

In this guide, we’ll walk you through how to set up your own Singapore VC fund and position it for long-term success.

Why Singapore VC funds are attracting investors

Singapore has cemented its reputation as one of the most dynamic startup ecosystems in the world, drawing entrepreneurs, venture capitalists, and family offices alike. Its strategic location in Southeast Asia, transparent regulations, and investor-friendly policies make it a natural hub for capital formation.

This didn’t happen overnight. Singapore’s government first laid the foundation back in 1991 through the National Technology Plan, designed to strengthen science and technology capabilities. Since then, initiatives like Startup SG, Enterprise Singapore, and the Economic Development Board (EDB) have expanded access to funding, mentorship, and international networks.

The city-state is also home to accelerators, incubators, and co-working spaces that enable startups to scale rapidly. For venture capitalists, Singapore offers three core advantages:

• A predictable regulatory framework that reduces friction for fund managers.
• Deep tax treaty networks (DTAs) that minimise withholding tax on cross-border income.
• A progressive stance on deep tech and innovation, expected to shape the next decade of growth.

MAS licensing requirements for VC fund managers

In Singapore, anyone managing venture capital funds must obtain a Venture Capital Fund Manager (VCFM) licence from the Monetary Authority of Singapore (MAS).

To qualify, managers must meet MAS’ “fit and proper” standards, which assess financial soundness, integrity, reputation, and professional conduct. MAS also acknowledges that venture capital investing benefits from diverse backgrounds and entrepreneurial experience.

Key requirements under the VCFM licence include:

• Corporate structure: The management company must be incorporated in Singapore.
• Board and staffing: At least two directors and two full-time staff must be appointed.
• Office premises: A dedicated private office in Singapore is required to house staff and operations.
• Fund scope: VCFM licensees may only manage venture capital funds under this regime.
• Use of service providers: Any outsourcing of functions must comply with MAS’ Outsourcing Guidelines.

Also Read: From pilot to scale: Why traditional VC metrics don’t work for climate deep tech

Ongoing obligations under the licence include:

• AML/CFT compliance: Strict adherence to MAS’ anti-money laundering and counter-terrorism financing standards
• Misconduct rules: Compliance with MAS’ standards on misconduct, ensuring integrity and accountability
• Conflict management: Identifying, avoiding, and managing potential conflicts of interest
• Investor disclosures: Providing all investors with clear, specific, and timely disclosures.

Traditionally, fund managers would handle all of this themselves, from setting up the entity, applying for the license, to managing compliance end-to-end. While effective, this route can be resource-heavy and slow.

In Singapore’s market, there are many platform who offer fund in a box or External Asset Manager (EAM) solutions which you can consider if you’re looking for a lighter model.

Choosing the right fund structure in Singapore

The first step in launching a fund is selecting the right structure. Singapore VC funds can be set up under several frameworks, but the most widely used today is the Variable Capital Company (VCC), introduced in 2020 for its flexibility and asset segregation benefits.

Here’s a quick comparison of available structures:

• Variable capital company (VCC): Allows multiple sub-funds under one umbrella, with flexibility in share issuance and redemption.
• Unit trusts: Popular with hedge funds; assets are held by a trustee for investors.
• Limited partnerships (LPs): Common for private equity and VC; partners share profits with varying liability levels.
• Private companies: Traditional corporate vehicle for smaller funds.
• Business trusts: Separate ownership and management, suitable for infrastructure projects or specialized assets.
• REITs (Real estate investment trusts): For funds investing directly in real estate portfolios.

Sometimes a Fund might not be required and a Special Purpose Vehicle or SPV can suffice.

Tax incentives and benefits for Singapore VC funds

Singapore’s appeal is further enhanced by its robust tax incentive framework, designed to attract high-value economic activities. According to PwC, “Tax incentive applications are subject to detailed evaluation of an applicant’s business plans, requiring strong commitments to Singapore’s economy.”

Also Read: The power of networks: How David Blumberg built a thriving VC firm with a billion dollar portfolio

It’s important to note that many of Singapore’s headline corporate incentives such as the Pioneer Incentive, Development and Expansion Incentive, and Double Tax Deduction scheme apply primarily to startups or corporates that VC funds may invest in. These do not directly affect the taxation of licensed VC Fund Managers.

For fund managers themselves, the most relevant exemptions fall under Singapore’s Income Tax Act, specifically Sections 13H, 13R, 13O, and 13U:

• Section 13H (Venture capital funds incentive): Grants tax exemption on income from funds investing in unlisted Singapore-based companies, with fund managers of approved funds eligible for a 5% concessionary tax rate under the FMI (Fund Management Incentive) scheme.
• Section 13R (onshore fund exemption): Applies to Singapore-incorporated and resident funds, offering exemption on specified income from designated investments.
• Section 13O (enhanced tier fund exemption): Applies to onshore Singapore funds, granting tax exemptions on specified gains provided the fund is tax resident in Singapore, managed locally, and meets business spending conditions.
• Section 13U (enhanced tier fund incentive for large funds): Grants tax exemptions on income from designated investments like stocks, bonds, and derivatives, for funds managed in Singapore with a minimum size of SGD 50M.

Step-by-Step: How to launch your VC fund

Building a venture capital fund in Singapore requires more than securing capital; it’s about establishing credibility, structuring effectively, and operationalising your fund. Here’s a step-by-step roadmap:

Build your track record

Your track record reflects your past performance as an investor, including the types of investments you’ve made, why you made them, and the returns you’ve generated. Limited partners (LPs) evaluate key performance metrics such as:

• Total Value to Paid-In (TVPI)
• Multiple on Invested Capital (MOIC)
• Internal Rate of Return (IRR)

Also Read: VC deal-breakers: How anti-dilution clauses could sink your startup

If you’re a first-time fund manager without prior fund metrics, you can establish credibility through:

• Angel investing: Building a personal investment portfolio with smaller checks, typically under $100K.
• Special purpose vehicles (SPVs): Pooling capital for single-company deals, giving your network access to investment opportunities.
• Warehousing investments: Making early investments before officially forming your fund, then transferring them into the fund after close.

Partner with the right people

While it’s possible to launch a VC firm solo, partnering with someone whose skills complement your own strengthens credibility. For example, an operator with a COO background might team up with someone experienced in finance or technical expertise.

Choose the right structure

Most VC firms in Singapore establish a Private Limited Company (Pte. Ltd.) as their licensed management entity. The actual funds they manage are typically structured as Variable Capital Companies (VCCs), which provide flexibility in share issuance and redemption, as well as tax and regulatory advantages tailored for investment funds.

Fundraise and form the fund

Raising a VC fund involves pooling capital from external investors who become limited partners. This step is crucial in demonstrating your ability to attract backers who believe in your strategy.

Operationalise your fund

To run smoothly, your VC fund needs the right service providers. From fund administration and legal structuring to compliance support, outsourcing operational tasks ensures efficiency and investor confidence.

As PKF O’Connor Davies highlights, “A successful fund launch requires operational readiness, regulatory compliance and investor preparation. Taking the right steps early can set the foundation for long-term success.”

Final thoughts

Singapore has become the preferred launchpad for venture funds in Asia, offering clarity of regulation, world-class infrastructure, and unparalleled tax incentives. For new and experienced managers alike, it provides a powerful ecosystem to scale globally.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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Walk into just about any fintech or crypto conference, and one of the first things you can see is the gender imbalance. Rows of booths and panels, conversations all over the place — but women are still noticeably underrepresented. Even after almost two decades of working in financial markets, I often find myself in rooms where women can be counted on two hands.

This imbalance isn’t just about social fairness; it’s about missed business opportunities. It’s a gap that costs the industry real innovation and growth. Fintech is one of the fastest-developing sectors, both in Southeast Asia and globally, but by keeping women on the sidelines, it leaves enormous potential untapped. An estimated US$700 billion worth of potential, if we are to speak in more specific terms.

The good news is that things are gradually changing. The world is learning to recognise that women having equal space to lead and build in finance is not just possible but also beneficial for everyone involved.

Let me explain what I mean by that.

Why inclusion equals innovation

When women are at the table — as founders, executives, employees, and customers — financial products stand a real chance of getting better. Why? Because they can be designed with more people in mind and reflect real-world needs.

Take lending, for example. Women entrepreneurs often face unique challenges securing credit due to a lack of collateral or traditional financial histories. According to past reports by the World Economic Forum, 80 per cent of women-owned businesses with credit needs are either unserved or underserved by financial systems globally

This means that female founders are more interested than many others in developing more inclusive products and services. Drawing on personal experiences and needs, they can design solutions like alternative credit scoring or micro-lending platforms that stand to benefit not just women, but many other underserved markets.

Also Read: Why AI inclusion matters: Lessons from Mongolia’s Girls Code movement

At the same time, a team with more diverse representation can hedge better against risks. Members from different backgrounds are more likely to identify overlooked niches or spot potential drawbacks. All of which will help your business respond better to evolving consumer demands. In fintech, where the landscape shifts on a daily basis, that adaptability can make or break a company.

Southeast Asia: A region at a crossroads

Southeast Asia makes for a promising case in female inclusion because its fintech ecosystem is still young. Unlike the more mature markets, there is still room to shape the rules of the game, set new norms. This region has a unique opportunity to build gender diversity from the start instead of trying to “fix” things afterwards.

That said, there are still barriers that get in the way of female participation. Only nine per cent of fintech firms in Southeast Asia are founded or led by women, and the number of management positions held by them is limited to roughly 15 per cent. What’s worse, this number drops even further during the later growth stages, becoming closer to 10 per cent. 

Also Read: Inclusion starts at the top: Why listening beats moving fast in Southeast Asia

Curiously, Singapore shows comparatively better performance than the rest of the region. In 2024, women held 25 per cent of board seats in the top 100 locally listed companies. This figure is slightly up from 2023, so we can see that progress is happening, even if it is slow. 

But if we look in perspective, Asia already has a higher proportion of female leadership compared to some other regions. Take GCC countries, for example: in 2024, women there held only five per cent of board seats on average. The UAE had been the only major outlier, standing at 10.8 per cent. By comparison, the above-mentioned Singapore is already considerably ahead. 

And that gives us a glimpse of what the future can be. While far from perfect, Asia already has the momentum it could use to become a role model for inclusive growth in fintech. Whether or not it takes that opportunity — that’s the question now.

Using the ripple effect to overcome barriers

Of course, numbers alone aren’t the whole story. What women in financial markets really need are stories: real experiences, shared by women who have faced scepticism in male-dominated boardrooms but pushed through it. Many female workers currently feel like outsiders in finance because there are few role models they can look up to.

To change this, we need to pay greater attention to community support and culture-building. Young women entering the workforce need to see those who came before them — female CEOs, business leaders, investors. And by knowing that their predecessors succeeded, they can, in turn, find inspiration and believe in themselves.

Also Read: Built for all or built to fail? Why tech for social impact must start with inclusion

It’s for that very reason that I began my own initiative called Women Leading the Way a couple of years back. Even though I myself haven’t actually run into that many cases of toxic behaviour, it felt to me that I could help give voice to women who have. And so I set out to build a networking platform where female professionals could meet and talk openly, sharing their stories, struggles and successes.

And one thing I found inspirational is that, as the initiative gained popularity, it wasn’t just women who took part in it. Yes, many wrote to us with feedback saying that it felt heartening to see many of their own problems being openly discussed by others. But, even more interestingly, many men also joined the effort, talking about our platform with their acquaintances. Some of them would even recommend female colleagues who could take part in our discussions. 

It proved a simple but effective point: representation can create change. So long as there are people committed to speaking out and championing a cause, there will be those who will choose to follow. That kind of change won’t happen in a day, but it will happen so long as we keep pushing for it. 

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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