The slump in the crypto market is noticeable in the numbers

Stuttgart Stock Exchange

CEO Matthias Voelkel wants to expand the classic stock exchange business in addition to the crypto segment.

(Photo: dpa)

Frankfurt The turbulence on the crypto market is affecting Boerse Stuttgart’s business. The trading volume in cryptocurrencies fell by almost 60 percent to 3.3 billion euros in 2022, as the company announced on Friday.

“At the beginning of the year, few had expected such a turbulent and negative market development,” said CEO Matthias Voelkel. The decline in trading volume correlates strongly with the performance of bitcoin. The most important cryptocurrency has lost around two-thirds of its value since the beginning of the year.

Most recently, the collapse of the FTX crypto exchange made headlines. FTX founder Sam Bankman-Fried has been charged on suspicion of fraud and money laundering.

In Germany, the Stuttgart Stock Exchange is one of the pioneers in the crypto business. She wants to continue expanding the segment despite the recent turbulence. The FTX case showed how important trust is in the business, says Voelkel. As a company regulated in Germany with a transparent business model, Boerse Stuttgart even benefits from the FTX bankruptcy when it comes to acquiring new customers.

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“The security and trustworthiness that we stand for is becoming more important in times like this – also and especially for private investors.” According to Voelkel, the increases around the FTX bankruptcy were particularly high.

Three small cooperative banks, a savings bank and the online broker Flatex also offer their customers cryptocurrencies via the Stuttgart Stock Exchange. Numerous other banks are talking to the Swabians about cooperation, but are currently reluctant to implement it.

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“On the one hand, we are observing a greater reluctance among institutional customers, especially after the events surrounding FTX,” emphasizes Voelkel. “On the other hand, interest in us has increased significantly.” Some institutes that previously wanted to cooperate with younger and less regulated crypto providers have now approached Boerse Stuttgart. Most would not have given up on their crypto plans.

Experts assume that the crypto crisis will continue for a while. However, Voelkel is convinced that the segment has a future. “In the medium and long term, the trend towards digitization and the corresponding asset classes will not disappear.”

Problems in the classic stock exchange business

In addition to crypto, Voelkel also wants to expand the classic stock exchange business. In 2022, however, the volume of securities trading at the Stuttgart Stock Exchange fell by around 15 percent to 91.1 billion euros. The company attributes this to the reluctance of many investors due to the uncertainty in the markets.

Deutsche Börse, which is significantly larger, has also recently felt the effects of this. From January to the end of November 2022, however, the trading volume on the cash markets of the Dax group was only slightly below the previous year’s value at EUR 1.473 trillion.

More: “Amateur, infantile on the way” – Bafin boss calls for comprehensive regulation of the crypto sector

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