CoinMarketCap: Bitcoin fails to gain institutional foothold amid fragmented EU regulation

Institutional adoption of Bitcoin in the EU has been sluggish, primarily due to regulatory fragmentation and conservative investment strategies. Unlike the US, where President Donald Trump ordered to create a federal BTC reserve, European firms have no clear position on the asset. 

Elisena Fabregui, General Counsel at Brickken, notes that the major hurdles to official recognition of Bitcoin are vague rules in the EU and the cautious approach of financial institutions. Even prominent market players like BNP Paribas, VanEck Europe and Bitpanda rarely disclose their BTC holdings. 

The region's fragmented regulatory landscape limits access to Bitcoin for pension funds and asset managers. According to Nexo analyst Ilya Kalchev, demand for BTC ETFs is significantly higher in the US due to more transparent regulations.

The upcoming launch of BlackRock's Bitcoin ETP in Europe on March 25 has the potential to drive institutional adoption. Nevertheless, Bitpanda reported many regional firms are underestimating cryptocurrency demand by as much as 30%. In the absence of a more transparent regulatory framework, the full potential of Bitcoin in the EU market remains fuzzy, CoinMarketCap note.