KPMG study uncovers revived faith among German investors in cryptocurrency
German crypto investors are experiencing a revived sense of optimism and confidence, according to a recent study conducted by KPMG. The study, in collaboration with BTC-ECHO, surveyed approximately 2,400 private crypto investors in Germany, Austria, and Switzerland. The results revealed a significant surge in crypto interest, with 54% of respondents allocating more than 20% of their total assets towards crypto investments.
The recent surge in Bitcoin, which reached a record high of $72k, has sparked renewed hope among crypto investors. This surge was driven by the performance of spot Bitcoin ETFs and the anticipation surrounding the Bitcoin halving. Ripple CEO, Brad Garlinghouse, predicts that the crypto market will surpass $5 trillion by the end of the year.
Interestingly, a large portion of investors (approximately 67%) are demonstrating a strong commitment to digital assets, planning to hold onto their investments for a period ranging from three to five years. However, newcomers to the market are approaching investment opportunities with caution, carefully analyzing prospects and exercising patience. Consequently, service providers are compelled to make additional efforts to convert potential investors into customers.
In terms of choosing crypto exchanges, investors prioritize security, deposit/withdrawal options, and transaction costs. This was observed in 2023. The report indicates that 34% of investors deem their digital asset investments to be “rather safe.” However, concerns about market manipulation, regulatory uncertainty, and financial crimes continue to persist.
Compared to 2023, Bitcoin’s dominance in the surveyed investor portfolios has increased by 7%, maintaining its position at 91%. Solana has experienced a significant 9% rise compared to 2023, securing second place behind Ethereum.
The German government is actively shaping cryptocurrency regulations to safeguard investors and stabilize the financial system. Since 2019, laws have permitted banks to handle and trade cryptocurrencies, and ongoing efforts are being made to tighten regulations for exchanges and initial coin offerings (ICOs). Regulatory agencies such as BaFin and the Federal Ministry of Finance are enforcing compliance, including strict know-your-customer (KYC) and anti-money laundering (AML) guidelines to prevent fraud on crypto exchanges.
