A fresh wave of enthusiasm is sweeping through German investors as indicated by a recent study conducted by KPMG. Despite the challenges faced by the cryptocurrency sector over the past year, investors are displaying renewed interest, coinciding with the anticipation surrounding the upcoming Bitcoin halving event slated for mid-April 2024.
The comprehensive report, encompassing insights from approximately 2,400 private crypto investors spanning Germany, Austria, and Switzerland, provides valuable observations on shifting investment trends and attitudes within the DACH region. Noteworthy among the findings is a marked surge in crypto investments, with over half (54%) of the surveyed respondents allocating more than 20% of their total investments to digital assets.
Particularly striking is the commitment shown by a segment of investors who allocate over half of their assets to cryptocurrencies, signaling a readiness to support the industry over the next 3 to 5 years.
Moreover, the study highlights a discernible shift towards more cautious investment strategies. With new entrants conducting thorough evaluations before deploying funds, there is a growing imperative for crypto service providers to bolster efforts in translating registered interests into active investments, underlined by the conspicuous gap between platform registrations and active engagement.
Security considerations remain paramount in the selection of crypto exchanges, with 82% of investors prioritizing this aspect. Additionally, factors such as deposit and withdrawal options, along with transaction costs, weigh heavily in the decision-making process for 65% and 62% of respondents, respectively.
Despite a notable 34% of respondents regarding their crypto investments as relatively safe, prevailing concerns persist regarding market manipulation, regulatory uncertainties, and financial malfeasance.
Bitcoin maintains its dominance as the preferred choice among investors, with a commanding presence held by 91% of respondents, closely trailed by Ethereum at 78%. Meanwhile, Solana has garnered increased attention, witnessing a 9% uptick compared to the previous year, solidifying its standing among the top digital assets in the region.
In a broader market context, the recent approval of Bitcoin spot Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has been a significant development, attracting substantial capital inflows. Since their inception, Bitcoin ETFs have amassed an impressive $56.2 billion.
However, spot Bitcoin ETFs experienced a net outflow of $55 million on Friday, April 12, with the preceding week witnessing a total outflow of $298.4 million.
Analysts speculate that these withdrawals may signify investors capitalizing on profits ahead of the halving event, often followed by reinvestment strategies post-market corrections.
The impending Bitcoin halving, known for reducing the new supply of Bitcoin, typically heralds a bullish market sentiment, heightening expectations of heightened demand as the cryptocurrency sector continues its expansion.
Maciej Burno, Chief Business Development Officer of Reality Metaverse, remarked, “With the reduction in new Bitcoin supply, heightened demand is anticipated, especially amid the burgeoning growth exhibited by other cryptocurrencies, particularly those in AI and gaming sectors, portending a bullish trajectory ahead.”
