Bitcoin institutional adoption in Europe is slow, with regulatory complexity and conservative investment policies serving as key hurdles. The US is making progress, including President Trump’s executive order to establish a federal Bitcoin Reserve, but European companies are largely quiet about the issue.
Elisenda Fabrega, general counsel for Brickken, a European RWA tokenization platform, pointed to European reluctance to adopt Bitcoin stalks from unclear regulations, institutional signals, and market maturation. According to Fabrega, European companies have not yet taken a clear stance on Bitcoin as a reserve asset, which has contributed to the slow pace of adoption.
Some companies, such as BNP Paribas, 21Share AG, Vanek Europe, and Bitpanda, have published Bitcoin Holdings, but such cases are still rare. The fragmented regulatory framework in Europe is another important issue. Bitfinex analysts said that the European institutional landscape is split, with regulatory hurdles and conservative investment obligations limiting Bitcoin exposure for many investors. European pension funds and asset managers have been slowing down their adoption of Bitcoin, mainly due to unclear guidelines and concerns about risk.
Nexo analyst Iliya Kalchev highlighted that European retail investors’ participation in Bitcoin was in contrast to the US, which contrasts with the US, and contrasts with the US, which is supported by strong retaliation demand and a clear regulatory environment.
BlackRock, which recently launched its Bitcoin Exchange Trade Product (ETP) in Europe on March 25th, could show change and potentially increase in institutional trust in assets. However, analysts believe that widespread adoption between European institutions will remain limited without clearer regulations.
Despite growing global interest in Bitcoin, European regulatory uncertainty remains a major obstacle. A recent study by Bitpanda suggests that European financial institutions may underestimate crypto demand by up to 30%.
At the time of writing, Bitcoin priced at $82,079.66, but European adoption rates lag behind other markets. The lack of clear regulatory guidance has made many European investors more cautious about their commitment to Bitcoin, further contributing to the slow pace of institutional adoption. The possibility of Bitcoin in the European market remains uncertain due to the lack of clarity in regulations.