Bitcoin Adoption in Europe: Can BlackRock’s ETP Spark a Crypto Revolution?

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Recently, BlackRock introduced a Bitcoin Exchange-Traded Product in Europe. It has sparked serious discussions in the cryptocurrency community about Europe’s BTC adoption. During these discussions, many have expressed concerns about the slow BTC adoption trend in the European Union.

Considering the unique economic model of Bitcoin, early adopters will have a clear advantage in the future. The US government, especially since the inauguration of Donald Trump, has introduced several pro-crypto policies, including the creation of a federal Bitcoin reserve through an executive order. Thus, it has already gained an edge over others, particularly Europe, in the global BTC race. The critical question is: What is holding the EU back? 

US Pushes Forward: Trump’s Executive Order on Bitcoin Reserves

After the inauguration of Trump, the US government has introduced a series of policies to bring more clarity to its crypto regulatory environment, especially its Bitcoin regulatory framework, and to support the future growth of the cryptocurrency industry.

The latest among those policies is the establishment of a federal Bitcoin reserve on March 7. 

Right now, the reserve will be used to store BTC seized in criminal cases. It is almost certain that its scope will be expanded in the future.    

What these developments indicate is that the US has already secured an edge in the BTC race through the efforts it has put to create regulatory clarity and to develop supportive policies. 

Why Is Institutional Bitcoin Adoption Slower in Europe?

It is evident that Bitcoin adoption in Europe is slow. Experts, like Brickken general counsel Elisenda Fabrega, blame the complex regulatory regime of Europe for the stagnation. Fabrega points out that so far, Europe has failed to create a clear policy on Bitcoin as a reserve asset.  

Bitfinex analysts note: “Europe’s institutional landscape is more fragmented, with regulatory hurdles and conservative investment mandates limiting Bitcoin allocations.”   

Which European Companies Have Adopted Bitcoin?

It is a well-known fact that the unique economic model of Bitcoin offers a clear advantage to early adopters. This implies that the US has gained an advantage over Europe in the Bitcoin landscape. 

However, certain European companies have taken the risk of entering the market, despite the vague crypto regulatory environment in Europe. This group of courageous firms includes French banking conglomerate BNP Paribas, Swiss firm 21Shares AG, VanEck Europe, Malta-based Jacobi Asset Management and Austrian fintech firm Bitpanda.  

Retail vs. Institutional Demand: How Europe Compares to the US

Apart from the regulatory issues, lower retail demand for Bitcoin in Europe is another sensitive area that needs attention. Experts state that the European market is more conservative in nature and is slower to adopt new financial instruments. 

In the US, the trend is exactly the opposite. It took no time for the Bitcoin Spot ETF market to gain traction. Currently, the total market cap of the Bitcoin Spot ETF segment sits at $92.83B. Its 24-hour volume stands at $1.58B.   

BlackRock’s Bitcoin ETP: A Game-Changer for Europe? 

As revealed in the introduction, the largest asset management firm in the world, BlackRock, introduced a Bitcoin Exchange-Traded Product on March 25. 

The entry of BlackRock in the European Bitcoin market with a promising financial product is expected to change the destiny of the crypto sector in Europe.