Despite moving forward with groundbreaking cryptocurrency regulations the US is trying to establish as a national reserve asset, the institutional adoption of Bitcoin in the European Union has been slow.
More than three weeks after President Donald Trump’s March 7 executive order outlined plans to create a federal Bitcoin (BTC) reserve using cryptocurrencies seized in criminal cases, European companies have been largely silent on the issue.
The stagnation could stem from a complex European regulatory regime, according to Elisenda Fabrega, general counsel for Brecken, a European real-world asset (RWA) tokenization platform.
“The recruitment of European companies remains limited,” Fabrega told Cointelgraf, adding:
“This hesitation reflects deeper structural disparities rooted in regulations, institutional signals and market maturation. Europe has yet to take a critical stance about Bitcoin as a reserve asset.”
Bitcoin’s economic model supports early adopters. This could put pressure on more investment companies to consider exposure to BTC. The asset has outperformed most major global assets since Trump’s election despite recent revisions.
The performance of assets since Trump’s election victory. Source: Thomas Fahrer
Despite Trump’s executive order, only a few European companies have held Bitcoin or published crypto services. These include French banking giant BNP Paribas, Swiss company 21Share AG, Jacobi Asset Management based in Vaneck Europe, Malta, and Austrian fintech company Bitpanda.
A recent Bitpanda study suggests that European financial institutions may underestimate crypto investors’ demand by up to 30%.
Related: Friday’s US Inflation Report could catalyze Bitcoin’s April rally
There is no clarity in Europe’s “fragmented” regulatory landscape
The slow adoption of the EU appears to be linked to a patchwork of regulations and a more conservative investment delegation, Bitfinex analyst told Cointelegraph. “The European institutional landscape is more fragmented, with regulatory hurdles and conservative investment obligations limiting Bitcoin allocations.”
“In addition, European pension funds and large asset managers were slow to adopt Bitcoin exposure for unclear guidelines and risk aversion,” they added.
Related: Bitcoin hits $110K before $76.5K “more likely” – Arthur Hayes
Beyond fragmented regulations, European retail investors’ appetites and retail participation are generally lower than in the US, according to Iliya Kalchev, a temporary analyst at Digital Asset Investment Platform Nexo.
Europe is “generally more conservative in adopting new financial products,” the analyst told Cointelegraph, adding:
“This is in stark contrast to the deep, liquid, and relatively unified US capital markets where the deployment of spot Bitcoin ETFs is supported by strong retail demand and a green light of clear regulations.”
iShares bitcoin etp list. Source: BlackRock
BlackRock, the world’s largest asset manager, launched Bitcoin Exchange Trade Products (ETP) in Europe on March 25th.
https://www.youtube.com/watch? v = gnunx0qw3q
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