A mature approach by BlackRock to promoting its new spot ETF with an ad labelling Bitcoin simply as 'progress'.
Germany is leaning towards taking a friendly approach to cryptocurrency investment, according to a fresh report that looks into German’s trading and investment habits and interests.
According to a report released by KuCoin, titled Into The Cryptoverse 2022, Germany is rising up as one of the crypto adopters in the European region. According to KuCoin, 44% of Germans are “motivated to invest in cryptocurrencies to be a part of ‘the future of finance’ and “37% of German crypto investors have been trading cryptocurrencies for over a year.”
German crypto investment over the years
As the legal regulations in Germany continue to develop, the decentralised asset class – and cryptocurrency industry – in the county has experienced a rise in adoption of investors. As per KuCoin’s research, 16% of the German adult population between 18 and 60 years old are currently cryptocurrency investors, holding a digital token in their portfolio, or having traded a cryptocurrency in the last six months. Of these recent investors, 41% intend to increase their cryptocurrency holdings in the next six months. And, according to KuCoin, who don’t have cryptocurrency aren’t ruling it out, with 13% saying that they are crypto-curious and intend to invest in the next half year, 23% of non-investors say they are likely to invest and the remaining group still sitting on the fence. Results from the research show that just under 70% of cryptocurrency investors are men. However, the gender gap might be closing as the crypto-curious are made up of 53% women.
The growing interest in Germany; cryptocurrency adoption on the rise
The research points to evidence that cryptocurrency investment in Germany is being driven by the financial opportunities and the chance to grow passive income with an alternative asset. The report indicates that 44% of Germans are motivated in the industry to be a part of where they might see the “future of finance” going. 35% are invested in cryptocurrency for the passive income opportunities, 30% believe the digital assets will provide a reliable means of value storage, and 29% are seeking to become financially independent as a result of cryptocurrency investment.
Where are Germans investing in the cryptocurrency industry?
As cryptocurrencies are highlighted as investment opportunities in the country and as we start seeing more mainstream adoption, it’s interesting to note in which crypto investors are looking. According to results from the report, 24% of trading volume in Germany comes from cryptocurrency staking to find profits and returns higher than traditional savings accounts might offer. Cryptocurrency lending stands as the second most prominent type of product in the industry, accounting for 13% of investor’s trading volume. On the other side of the coin, 31% of the crypto-curious intend to start investing from crypto lending (as crypto borrowers). With the volatility in the industry, 50% of the crypto-curious expect no more than 10% yields or 5% losses on their investment. According to the research, 77% of the crypto-curious are researching which assets to invest in, rather than leaning towards the leading Bitcoin without research. This indicates a high level of cryptocurrency literacy in the country and offers the potential for a future where investors make informed decisions rather than following the hype.