Bitcoin adoption in Europe struggles with unclear regulations

Institutional adoption of Bitcoin (CRYPTO:BTC) in Europe remains slow, with analysts attributing the hesitation to regulatory complexities and conservative investment policies.  

Despite growing interest in Bitcoin globally, European companies have yet to embrace it as a reserve asset. According to Elisenda Fabrega, general counsel at Brickken, uncertainty surrounding regulations has kept adoption limited.  

“This 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,” Fabrega said.  

While the United States has moved forward with policies that support Bitcoin adoption, including the establishment of a federal Bitcoin reserve, European firms have remained cautious.

Only a few companies, such as BNP Paribas, 21Shares AG, VanEck Europe, Jacobi Asset Management, and Bitpanda, have disclosed Bitcoin holdings or crypto-related services.  

Analysts at Bitfinex noted that Europe's fragmented regulatory framework has created uncertainty for institutional investors.  

“Europe’s institutional landscape is more fragmented, with regulatory hurdles and conservative investment mandates limiting Bitcoin allocations,” they said.  

According to Iliya Kalchev, an analyst at Nexo, pension funds and asset managers in Europe have been reluctant to adopt Bitcoin due to unclear guidelines and risk concerns.  

“This stands in stark contrast to the deep, liquid, and relatively unified U.S. capital market, where the spot Bitcoin ETF rollout was buoyed by strong retail demand and a clear regulatory green light,” Kalchev explained.  

BlackRock’s recent launch of a Bitcoin exchange-traded product in Europe could help build confidence among investors. However, analysts believe that without clearer regulations, widespread adoption by European institutions will remain limited.

At the time of reporting, the Bitcoin price was $82,485.39.