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Institutional adoption of Bitcoin in the European Union remains sluggish, even as the United States moves forward with landmark cryptocurrency regulations that seek to establish BTC as a national reserve asset.<\/p>\n
More than three weeks after President Donald Trump\u2019s March 7 executive order outlined plans to use cryptocurrency seized<\/a> in criminal cases to create a federal Bitcoin (BTC<\/a>) reserve, European companies have largely remained silent on the issue.<\/p>\n The stagnation may stem from Europe\u2019s complex regulatory regime, according to Elisenda Fabrega, general counsel at Brickken, a European real-world asset (RWA) tokenization<\/a> platform.<\/p>\n \u201cEuropean corporate adoption remains limited,\u201d Fabrega told Cointelegraph, adding:<\/p>\n \u201cThis 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.\u201d<\/p><\/blockquote>\n Bitcoin\u2019s economic model favors early adopters, which may pressure more investment firms to consider gaining exposure to BTC. The asset has outperformed most major global assets<\/a> since Trump\u2019s election despite a recent correction.<\/p>\n Asset performance since Trump\u2019s election victory. Source: <\/em>Thomas Fahrer<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Despite Trump\u2019s executive order, only a small number of European companies have publicly disclosed Bitcoin holdings or crypto services. These include French banking giant BNP Paribas<\/a>, Swiss firm 21Shares AG, VanEck Europe, Malta-based Jacobi Asset Management and Austrian fintech firm Bitpanda.<\/p>\n A recent Bitpanda survey suggests that European financial institutions may be underestimating crypto investor demand<\/a> by as much as 30%.<\/p>\n Related: <\/strong><\/em>Friday\u2019s US inflation report may catalyze a Bitcoin April rally<\/strong><\/em><\/a><\/p>\n The EU\u2019s slower adoption appears tied to its patchwork of regulations and more conservative investment mandates, analysts at Bitfinex told Cointelegraph. \u201cEurope\u2019s institutional landscape is more fragmented, with regulatory hurdles and conservative investment mandates limiting Bitcoin allocations.\u201d<\/p>\n \u201cAdditionally, European pension funds and large asset managers have been slower to adopt Bitcoin exposure due to unclear guidelines and risk aversion,\u201d they added.<\/p>\n Related: <\/strong><\/em>Bitcoin \u2018more likely\u2019 to hit $110K before $76.5K \u2014 Arthur Hayes<\/strong><\/em><\/a><\/p>\n Beyond the fragmented regulations, European retail investor appetite and retail participation are generally lower than in the US, according to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo.<\/p>\n Europe is \u201cgenerally more conservative in adopting new financial instruments,\u201d the analyst told Cointelegraph, adding:<\/p>\n \u201cThis 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.\u201d<\/p><\/blockquote>\n iShares Bitcoin ETP listings. Source: <\/em>BlackRock<\/em><\/a><\/p>\n<\/figcaption><\/figure>\nEurope\u2019s \u201cfragmented\u201d regulatory landscape lacks clarity<\/h2>\n