The institutional acceptance of Bitcoin within the European Union is still sluggish, even as the United States advances with pivotal cryptocurrency regulations aimed at designating BTC as a national reserve asset.
Over three weeks following President Donald Trump’s March 7 executive order detailing plans for utilizing cryptocurrency seized in criminal matters to establish a federal Bitcoin (BTC) reserve, European enterprises largely have remained quiet on this subject.
The inertia may be attributed to Europe’s intricate regulatory environment, as noted by Elisenda Fabrega, chief legal officer at Brickken, a European real-world asset (RWA) tokenization platform.
“The adoption of Bitcoin in the European corporate sector is still restricted,” Fabrega informed Cointelegraph, further stating:
“This reluctance indicates a more profound structural gap, stemming from regulation, institutional signaling, and market development. Europe has not yet established a clear position on Bitcoin as a reserve asset.”
Bitcoin’s economic framework favors initial adopters, potentially motivating more investment companies to contemplate exposure to BTC. The asset has outperformed the majority of significant global assets since Trump’s election, despite a recent correction.
Asset performance following Trump’s electoral victory. Source: Thomas Fahrer
In spite of Trump’s executive order, only a limited number of European companies have publicly revealed Bitcoin assets or cryptocurrency services. This includes the French banking giant BNP Paribas, Swiss company 21Shares AG, VanEck Europe, Jacobi Asset Management in Malta, and the Austrian fintech firm Bitpanda.
A recent survey conducted by Bitpanda indicates that European financial institutions might be underestimating the demand for crypto among investors by as much as 30%.
Related: Friday’s US inflation report could spark a Bitcoin rally in April
Europe’s “disparate” regulatory framework lacks clarity
The EU’s slow adoption seems linked to its assortment of regulations and more cautious investment strategies, analysts at Bitfinex conveyed to Cointelegraph. “The institutional landscape in Europe is more divided, with regulatory barriers and conservative investment strategies constraining Bitcoin allocations.”
“Furthermore, European pension funds and major asset management firms have adopted Bitcoin exposure more cautiously due to ambiguous guidelines and risk aversion,” they appended.
Related: Bitcoin is ‘more likely’ to reach $110K before hitting $76.5K — Arthur Hayes
In addition to the disconnected regulations, the interest of European retail investors and their participation is generally lower compared to the US, according to Iliya Kalchev, dispatch analyst at the digital asset investment platform Nexo.
Europe tends to be “more conservative in embracing new financial tools,” the analyst remarked to Cointelegraph, adding:
“This sharply contrasts with the deep, liquid, and relatively integrated US capital market, where the rollout of the spot Bitcoin ETF was supported by robust retail demand and a clear regulatory endorsement.”
iShares Bitcoin ETP listings. Source: BlackRock
BlackRock, the largest asset manager worldwide, introduced a Bitcoin exchange-traded product (ETP) in Europe on March 25, a move that might enhance institutional confidence among European investors.
Magazine: Extortion scheme involving Bitcoin? BTS firm’s blockchain debacle: Asia Express
