The cryptocurrency market has recently experienced a surge in new capital due to the approval of Bitcoin funds in the USA. In contrast, European regulation by the EU Commission has made cryptocurrencies more appealing to new investor groups, providing regulatory clarity that has given banks confidence in dealing with cryptocurrency assets. This has opened up opportunities to attract new customer groups and easily invest in cryptocurrencies through apps offered by financial institutions.
One such platform is Bitpanda, a leading cryptocurrency platform that is now offering its investment infrastructure to financial institutions through its subsidiary Bitcoin Technology Solutions. Collaborations with major 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.