- Digital investment products lose $288 million worldwide, but Germany is a stable buyer’s market. Institutions and private investors are buying undeterred.
- With inflows of over $16 million, Germany not only ranks first in the EU, but is also one of the few regions in the world with positive signs.
The discrepancy between global and German demand illustrates the structural strength of the market, which is increasingly decoupling from short-term fluctuations. Overall, Europe shows a more robust picture than the USA, where the majority of global outflows originate.
In addition to Germany, Switzerland and, outside Europe, Canada have the most tributaries. In the EU, legally secure regulation through MiCAR and a growing infrastructure for custody and trading create an environment that offers investors security.
Germany benefits particularly from its early regulation of digital assets and its already well-advanced integration into the traditional financial sector. Banks, brokers and exchanges are continually expanding their offerings, accelerating the market penetration of crypto assets.
Tax advantage as a customer magnet
A key factor driving continued demand is the tax treatment of cryptocurrencies. Profits from private sales transactions remain tax-free after a holding period of twelve months. This makes Germany the country of choice for long-term investors.
At the same time, the consumer market is growing: savings banks and regional banks trade in crypto products, thereby giving millions of private customers access to Bitcoin and numerous altcoins.
Germany as an EU crypto hub
According to Chainalysis, Germany is a dynamic EU crypto market with significantly increasing sales.
The current inflows confirm this and underline its role as a growth engine in the EU. While many regional markets in America and Asia are under pressure, Germany is resilient and willing to invest.
The mix of reliable regulation, tax planning and growing infrastructure for private investors makes the location a leader in the European crypto industry.
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