Cryptocurrency Certificates Gain Popularity in Germany

In Germany, innovative financial trading products are gaining popularity among young traders. In its recent report, Deutsche Borse Group revealed that cryptocurrency certificates topped the list of most traded products on the Frankfurt Certificate Exchange (FCE) in 2021.

Last year, the trading volume related to crypto certificates jumped above €1 billion. Deutsche Borse expanded its crypto offerings significantly in 2021 and listed several new cryptocurrency products. In April 2021, Deutsche Borse enhanced its digital asset offering with the addition of Litecoin ETN.

The exchange reported overall trading volumes of €18.4 billion in 2021, which is substantially lower compared to €21.1 billion in 2020. While the total number of trading orders in structured products declined slightly, the average order size remained stable last year.

"In 2021, we were able to further expand the range of certificates on cryptocurrencies together with our issuers. With over 900 products on a total of 29 crypto underlyings, we now offer the largest range of crypto products in the certificate sector in Germany. This enables investors to trade cryptocurrencies quickly and easily via their own securities account," says Florian Claus, Board Member of Börse Frankfurt Zertifikate AG.

Crypto Adoption

In terms of adoption, Germany is among the top crypto destinations in the European region. In December 2020, Hauck & Aufhäuser, which is one of the oldest banks in the country, announced the launch of a cryptocurrency fund. In March 2021, Donner & Reuschel, a private bank headquartered in Hamburg, announced that the bank is planning to launch crypto services. The rising trading activity across crypto products in the German financial markets shows that regional investors are ready to embrace the emerging asset class.

"Since 1 July 2021, we have waived the calculation of value-added tax on the transaction fees paid by our trading participants at the Frankfurt warrants exchange," adds Simone Kahnt-Eckner, a Board Member of Börse Frankfurt Zertifikate AG.