:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/elcomercio/346J263GMBGWNP5GHA2IBCPX2A.jpg)
Cryptocurrency investments have been gaining traction in both the USA and Europe, thanks to regulatory clarity and the growing interest of banks. In the USA, the approval of Bitcoin funds has attracted a lot of new capital into the cryptocurrency market. Meanwhile, in Europe, regulation by the EU Commission has made cryptocurrencies more interesting for new investor groups. This regulatory clarity is giving banks confidence in dealing with cryptocurrency assets and opening up opportunities to attract new customer groups.
Customers can now easily invest in cryptocurrencies through apps offered by financial institutions. One such platform is Bitpanda, a leading cryptocurrency platform that is offering its investment infrastructure to financial institutions through its subsidiary Bitcoin Technology Solutions. Collaborations with banks like N26, RLB NÖ-Wien, and Landesbank Baden-Württemberg (LBBW) in Germany demonstrate the growing interest in cryptocurrency investments among both private and corporate customers. Bitpanda currently has 4.5 million users on its platform and sees potential for reaching 20 million new customers through bank partnerships across Europe.
Despite recent volatility in the cryptocurrency market, with transaction volumes still below peak levels from 2021, there has been a resurgence in interest from private investors due to recent price increases. Bitpanda has weathered market turbulence well and remained profitable last year. Surveys show that around 10% of the Austrian population invests in cryptocurrencies, with customers spanning all age groups.
Looking ahead, Bitpanda’s managing director Lukas Enzersdorfer-Konrad expects significant growth in the cryptocurrency investment sector this year, with major banks also exploring opportunities in this space. The company is optimistic about its future prospects and aims to capitalize on the increasing interest in cryptocurrencies among both individual and institutional investors.
Overall, it seems that regulation clarity is paving the way for increased adoption of cryptoassets by banks and other financial institutions across Europe.
