Bitcoin adoption by European institutions is still sluggish – even though the United States has enacted landmark crypto regulations to turn BTC into a national asset.
The March 7 Executive Order of Donald Trump has been in effect for more than three weeks. plans to use cryptocurrency seized Create a Bitcoin federal currency in cases of criminal prosecution (BTCThe European industry has remained largely quiet on this issue.
According to Elisenda Fábrega of Brickken, an European company, the stagnation could be due to Europe’s complicated regulatory system. real-world asset (RWA) tokenization platform.
“European corporate adoption remains limited,” Fabrega told Cointelegraph, adding:
“This hesitation reflects a deeper structural divide, rooted in regulation, institutional signaling and market maturity. Europe has yet to take a definitive stance on Bitcoin as a reserve asset.”
Bitcoin’s model of economics favors the early adopters. This may encourage more firms to invest in BTC. It has gained a lot of popularity. outperformed most major global assets Since Trump’s election, despite the recent correction.
Since Trump’s victory in the election, asset performance has improved. Source: Thomas Fahrer
Even though Trump issued his executive order on crypto-services, few European firms have made their Bitcoin or cryptocurrency holdings public. They include French banking giant BNP ParibasJacobi Asset Management, a Malta-based firm, and Bitpanda, an Austrian fintech company, are among the companies that have invested in this new technology.
Recent Bitpanda surveys suggest that European financial institutions could be at risk underestimating crypto investor demand As much as 30%
Related: Friday’s US inflation report may catalyze a Bitcoin April rally
Europe’s “fragmented” Lack of clarity in the regulatory landscape
Cointelegraph’s Bitfinex analysts said that it appears the EU is slower to adopt cryptocurrency due to their patchwork regulations and less conservative investment mandates. “Europe’s institutional landscape is more fragmented, with regulatory hurdles and conservative investment mandates limiting Bitcoin allocations.”
“Additionally, European pension funds and large asset managers have been slower to adopt Bitcoin exposure due to unclear guidelines and risk aversion,” Additions to the list include:
Related: Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur Hayes
Iliya KALCHEV, dispatch analyst for digital asset investment platform Nexo, says that despite the fragmented regulatory environment, European investors’ appetite and participation in retail are lower than those of the US.
Europe “generally more conservative in adopting new financial instruments,” The analyst said to Cointelegraph:
“This stands in stark contrast to the deep, liquid, and relatively unified US capital market, where the spot Bitcoin ETF rollout was buoyed by strong retail demand and a clear regulatory green light.”
iShares Bitcoin ETP listing. Source: BlackRock
BlackRock, the world’s largest On March 25, asset manager launched an exchange-traded Bitcoin product in Europe, a move that could boost investor confidence.
Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express
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Source: cointelegraph.com
