The recent approval of Bitcoin funds in the USA has attracted a lot of new capital into the cryptocurrency market, while in Europe, regulatory clarity is making 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.
Financial institutions are now offering their customers the ability to easily invest in cryptocurrencies through apps. One such platform is Bitpanda, which has 4.5 million users on its platform and sees potential for reaching 20 million new customers through bank partnerships across Europe. The company’s subsidiary, Bitcoin Technology Solutions, is offering its investment infrastructure to financial institutions like N26, RLB NÖ-Wien, and Landesbank Baden-Württemberg (LBBW) in Germany.
Despite recent volatility in the cryptocurrency market, there has been a resurgence in interest from private investors due to recent price increases. Surveys show that around 10% of the Austrian population invests in cryptocurrencies, with customers spanning all age groups. Despite this turbulence, Bitpanda remained profitable last year and expects significant growth in the cryptocurrency investment sector this year. Major banks are also exploring opportunities in this space and looking at ways to capitalize on increasing interest among individual and institutional investors.