German investors show renewed confidence in crypto, KPMG study reveals

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According to a recent report by KPMG, there’s a resurgence of hope and trust among German cryptocurrency investors, as they face the new year with renewed enthusiasm after overcoming the hurdles of the previous market turbulence.

KPMG in collaboration with BTC-ECHO recently carried out a survey among approximately 2,400 private crypto investors based in Germany, Austria, and Switzerland. The results unveiled an uptick in cryptocurrency enthusiasm, as over half (54%) of the participants revealed that they have allocated more than one fifth (20%) of their entire financial resources towards crypto investments.

Bitcoin hit an all-time peak of $72k lately, igniting optimism among cryptocurrency backers. This surge was driven by the impressive showing of Bitcoin ETFs that trade on the spot market and heightened expectations for the upcoming Bitcoin halving event.

According to Brad Garlinghouse, the CEO of Ripple, he predicts that the cryptocurrency market will surpass a value of $5 trillion by the end of this year.

Approximately two-thirds of investors are firmly invested in digital assets, intending to keep their holdings for a duration of three to five years.

In contrast, those fresh to the market are being more cautious now. They’re carefully examining potential investments and showing great patience. Consequently, businesses must work harder to win them over as clients.

When selecting crypto exchanges in 2023, investors prioritize features that ensure security, provide flexible deposit and withdrawal options, and keep transaction fees reasonable.

Based on the findings in the report, approximately one-third of investors consider their digital asset investments as relatively secure. Yet, these same investors express worry over potential market manipulations, ambiguous regulations, and financial misconduct.

In comparison to the data from 2023, Bitcoin’s share in investor portfolios grew by 7 percentage points, keeping its lead at 91%. Solana experienced a notable jump of 9%, placing it behind Ethereum as the second most popular choice.

Starting in 2019, the German government has been proactively crafting regulations for cryptocurrencies. The aim is to safeguard investors and maintain financial system stability. Banks have been given the green light to manage and trade cryptocurrencies. Regulatory efforts are continuously being made to strengthen oversight of exchanges and Initial Coin Offerings (ICOs).

Agencies such as BaFin and the Federal Ministry of Finance ensure that crypto exchanges adhere to rules, implementing rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to guard against fraudulent activities.

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2024-04-10 13:04