By Chris Hollingworth 
Institutional adoption of Bitcoin within the European Union has been slow-moving in comparison to the United States, where significant strides have been made towards establishing BTC as a national reserve asset. Despite President Donald Trump’s executive order on March 7 outlining plans to utilize cryptocurrency seized in criminal cases to create a federal Bitcoin reserve, European companies have largely remained reticent on the matter.
The hesitancy observed in Europe can be attributed to the region’s intricate regulatory framework, as noted by Elisenda Fabrega, the general counsel at Brickken, a European platform specializing in real-world asset (RWA) tokenization. Fabrega highlighted that European corporate adoption of Bitcoin remains constrained, citing regulatory complexities, institutional reluctance, and market maturity as contributing factors. The absence of a definitive stance on Bitcoin as a reserve asset in Europe further underscores the prevailing divide.
The economic model of Bitcoin, which favors early adopters, has prompted increased interest from investment firms looking to gain exposure to the asset. Despite a recent correction, Bitcoin has outperformed many major global assets since President Trump’s election.
While Trump’s executive order has set the stage for Bitcoin adoption in the US, only a handful of European companies have publicly disclosed their Bitcoin holdings or crypto services. These include prominent entities such as BNP Paribas, 21Shares AG, VanEck Europe, Jacobi Asset Management, and Bitpanda. A survey conducted by Bitpanda suggests that European financial institutions may be underestimating the demand for crypto investments by up to 30%.
The slower pace of adoption in the EU can be linked to the region’s fragmented regulatory landscape and conservative investment strategies, as highlighted by analysts at Bitfinex. The lack of clarity in regulations and risk aversion among European pension funds and asset managers has hindered Bitcoin allocations. Additionally, the retail investor appetite in Europe is generally lower compared to the US, where a more robust and unified capital market has paved the way for initiatives like the spot Bitcoin ETF rollout.
BlackRock, the world’s largest asset manager, introduced a Bitcoin exchange-traded product (ETP) in Europe on March 25, signaling a potential boost in institutional confidence among European investors. This development could potentially catalyze further adoption and integration of Bitcoin within the European financial landscape.
