A surge in demand for German corporate securities on the OTC Markets platform, a US-based trading venue, is signaling a shift in investor sentiment and a potential re-evaluation of risk exposure within the American market. According to Jason Paltrowitz, OTC Markets’ Vice President, average trading volume in German equities on the platform has jumped a significant 81% since the beginning of 2024. This initial influx, Paltrowitz told “Handelsblatt”, was primarily driven by US investors capitalizing on comparatively low valuations of German and European stocks.
However, a more profound change in investment strategy is now apparent. Paltrowitz noted that since early 2025, a growing number of US investors are actively seeking to diversify their portfolios, a move directly attributed to increasing political uncertainty within the United States and escalating concerns surrounding the sustainability of the artificial intelligence (AI) sector boom. This represents a potentially critical dynamic – a flight to perceived stability amidst domestic political turbulence and anxieties over the overvaluation of AI-driven assets.
The trend highlights a cautious realignment of investment priorities, as some investors are actively seeking counterbalancing investments in more traditional sectors like industry and consumer goods. Paltrowitz pointed to Germany and Europe as offering attractive opportunities within these established industries, suggesting a deliberate search for companies perceived as fundamentally sound and less susceptible to speculative bubbles.
The OTC Markets’ “Listing Light” program, which allows German companies already listed on German exchanges to access a broader US investor base with reduced regulatory and financial burdens compared to full listings on the NYSE or Nasdaq, is facilitating this trend. Currently, ADRs and shares of prominent DAX-listed companies including Adidas, BASF, Bayer, DHL, Deutsche Telekom and Infineon are available on the platform.
The increasing reliance on the OTC Markets by German corporations to reach US investors poses questions about the overall health and direction of the US markets and the degree to which perceived stability in German and European economies is attracting capital seeking refuge from American uncertainties. The move from US investors could also place increased scrutiny on German companies and potentially influence their strategies as they navigate a new, more demanding investor landscape.
