KPMG’s recent study reveals a surge in cryptocurrency investments among German investors as the Bitcoin halving event approaches.
Amidst a challenging year for the crypto sector, the report highlights a newfound enthusiasm just ahead of the anticipated mid-April 2024 halving event. Surveying approximately 2,400 private crypto investors in Germany, Austria, and Switzerland, the study unveils shifting investment patterns in the DACH region.
With 54% of respondents allocating more than 20% of their investments to digital assets, the study underscores a notable uptick in crypto investment. A dedicated segment of investors, committing over half of their assets to cryptocurrencies, signals a long-term commitment to the industry.
Moreover, there’s a discernible shift towards cautious investment strategies, with newcomers conducting thorough evaluations before investing. This trend emphasizes the need for crypto service providers to streamline efforts in converting interest into active investments.
Security remains paramount, with 82% of investors prioritizing it when selecting crypto exchanges. Factors such as deposit and withdrawal options and transaction costs also influence investment decisions.
While 34% perceive their crypto investments as relatively safe, concerns persist regarding market manipulation, regulatory changes, and financial crime.
Bitcoin remains the preferred choice for 91% of respondents, closely followed by Ethereum at 78%. Solana has witnessed a 9% increase in investor interest, solidifying its position among the top digital assets in the region.
In the broader market, the approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission has attracted significant capital inflows, totaling $56.2 billion since inception. However, spot Bitcoin ETFs experienced a net outflow of $55 million on April 12, signaling profit-taking ahead of the halving event.
Analysts anticipate a reinvestment post-halving, as the event historically precedes a bull market, fueling expectations of heightened demand amid the sector’s continued expansion.
