Coinbase Crypto Report Europe 2022 H1
The Coinbase Crypto Report 01 Europe 2022 H1 (CCRE) examines the behavior and the investment climate of crypto asset owners in Europe in the first half of 2022. — Philipp Sandner, Benjamin Schaub, Kiana Weiss
The report consists of 16 pages and can be downloaded here with the direct link to the PDF file (5,300 kB): English version, German version. The German version includes multiple specifics for the German market, so it is not a 1:1 translation.
Summary
Based on a total of 6,115 respondents from the countries Germany, France, Great Britain, Italy, the Netherlands and Spain, the findings of the Coinbase Crypto Report shows that over the next 12 months, 56% of crypto asset owners plan to increase their crypto holdings. Further, 33% of respondents said they plan to hold their assets, whereas only 11% plan to reduce their assets. The willingness to increase crypto holdings predominates in the 18–39 year old crypto owner demographic.
In terms of existing barriers to investing in crypto-assets, 25% of respondents cite the lack of investment-relevant information. This is followed by security concerns regarding crypto-assets, which prevent 23% of respondents from investing. The required know-how on how to invest in crypto-assets is also a barrier for 8% of the respondents.
The popularity of crypto-assets shows a clear upward trend. In the years from 2019 to 2021, 60% of the surveyed crypto asset owners entered the crypto asset market for the first time. The compound annual growth rate is 32%, indicating significant growth in the coming years.
Crypto asset owners actively use their crypto holdings. To this end, 26% of respondents said they actively grow their holdings through staking and crypto interest investments. Another 10% said they use their holdings as crypto loan collateral. Non-fungible tokens (NFTs) are also popular — 14% of respondents plan to purchase them with crypto assets.
Among crypto asset owners, Bitcoin, Ethereum and Binance Coin are the most popular. Bitcoin, the most significant crypto asset by market size, is owned by 69% of respondents. However, it is notable that Ethereum narrowed the gap with Bitcoin from 34% to 24% compared to CCRE 2021 and is now in 45% of portfolios. Binance Coin follows in third place with 25%.
In Germany, 47% of investors plan to increase their holdings, whereas 43% plan to maintain their holdings. In general, the adoption of crypto assets in Germany is somewhat slower. In the years from 2019 to 2021, however, a remarkable 68% of investors became active for the first time. The most popular two crypto assets in Germany — as in the other countries in the survey — are Bitcoin, followed by Ethereum. Bitcoin appears in investors’ portfolios with an above-average frequency of 71%, whereas Ethereum is slightly underrepresented with a value of 42%.
The younger generation between the ages of 18 and 39 is strongly represented in Germany at 57%. Additionally, survey results regarding the age group of 50 to 59 year olds show that this generation accounts for 14% of all crypto asset owners in Germany, which makes said age group an interesting target group for crypto assets with a share of 16% in the overall population. Compared to the investment behavior of the over-40 age group in traditional asset classes such as stocks, equity funds and ETFs, a great potential for the crypto asset market can be derived. Male investors retain the upper hand in the crypto asset market in Germany, with a 70% share of male crypto asset owners.
Remarks
The report consists of 16 pages and can be downloaded here with the direct link to the PDF file (5,300 kB): English version, German version. The German version includes multiple specifics for the German market, so it is not a 1:1 translation.
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About the authors
Prof. Dr. Philipp Sandner has founded the Frankfurt School Blockchain Center (FSBC). From 2018 to 2021, he was ranked among the “top 30” economists by the Frankfurter Allgemeine Zeitung (FAZ), a major newspaper in Germany. He has been a member of the FinTech Council and the Digital Finance Forum of the Federal Ministry of Finance in Germany. He is also on the Board of Directors of FiveT Fintech Fund and Blockchain Founders Group — companies active in the field of blockchain startups. The expertise of Prof. Sandner includes crypto assets such as Bitcoin and Ethereum, decentralized finance (DeFi), the digital euro, tokenization of assets, and digital identity. You can contact him via mail (m@philippsandner.de) via LinkedIn or follow him on Twitter (@philippsandner).
Benjamin Schaub is a senior consultant at INTAS.tech. His interests include the development and integration of blockchain use cases in the financial industry as well as crypto custody. You can contact him via email (benjamin.schaub@intas.tech) and via LinkedIn (https://www.linkedin.com/in/benjamin-schaub/).
Kiana Weiss is a research associate at the Frankfurt School Blockchain Center and Technology Consultant at Axxcon Management Consultants. Her areas of interest include education in blockchain, NFTs and digital marketing. She is studying Management, Philosophy & Economics at the Frankfurt School of Finance & Management. You can contact her via email (kiana.weiss@fs-blockchain.de) or on LinkedIn (https://www.linkedin.com/in/kiana-weiss/).
About the Frankfurt School Blockchain Center
The FSBC at the Frankfurt School of Finance & Management is designed as a think tank and research center and focuses on the implications of blockchain technology for businesses and the economy. In addition, the Center provides a knowledge-sharing platform for decision-makers, start-ups, technology and industry experts. INTAS.tech combines broad and industry-relevant expertise with proximity to business and academia. In particular, it helps companies in the blockchain ecosystem with consulting and the integration and handling of digital assets. Coinbase offers a common trading platform for cryptocurrencies and official currencies and has sponsored this report. Coinbase’s offering is divided into services for private individuals and companies. The offer for end customers comprises the trading platform including cyber wallet. With Global Digital Asset Exchange, a professional version of the trading platform is available for companies. In addition, external applications can be integrated into Coinbase via a programming interface, for example for automated payment transactions. This is aimed at developers and sellers.
