A recent survey by KPMG revealed that investor sentiment appears to be on the mend after a turbulent year for the crypto market.
The survey was conducted among approximately 2,400 individual crypto investors in Germany, Austria and Switzerland and highlights changes in investment behavior and attitudes in the DACH region.
New optimism and caution
The survey results revealed that investments in crypto assets are on the rise, with 54% of respondents allocating more than 20% of their total investments to digital assets. Many investors, especially those who dedicate more than 50% of their assets to cryptocurrencies, are committed to the industry for a medium to long term (usually 3-5 years).
However, the survey also highlights a shift in investor behavior, characterized by increased vigilance and scrutiny.
In particular, market entrants are conducting more thorough evaluations of investment opportunities, requiring providers to work harder to convert interest into actual customers. This trend is evidenced by the large gap between registration on cryptocurrency exchanges and actual usage.
Security remains a key concern for investors when choosing their preferred crypto exchange, with 82% highlighting the importance of security. Deposit and withdrawal options (65%) and transaction costs (62%) also rank high on the list of criteria.
The study also provides an investor perspective on risk. While 34% of investors believe investing in digital assets is “fairly safe,” most expressed varying levels of anxiety, citing concerns such as market manipulation, regulation and financial crime as key risks. ing.
Asset prioritization and regulation
When it comes to asset preferences, Bitcoin remains a major player in investors’ portfolios, with 91% of respondents holding cryptocurrencies. Ethereum follows, with 78% of investors choosing their second largest digital asset.
Interestingly, Solana has grown in popularity, posting a 9% year-on-year increase and securing its position as the top digital asset favored by investors in the region.
The German government is working on regulating cryptocurrencies to protect investors and ensure financial stability. In 2019, a law allowing banks to handle virtual currencies was passed, and discussions are continuing regarding rules for virtual currency exchanges and ICOs.
Regulatory bodies such as BaFin and the Federal Ministry of Finance oversee compliance with a focus on know-your-customer (KYC) and anti-money laundering (AML) regulations to prevent fraud on exchanges.
