Bitcoin adoption within the European Union remains slow, hindered by a fragmented regulatory landscape and lower liquidity compared to the United States. Analysts note that corporate interest in Bitcoin across Europe is tepid, as the EU continues to grapple with unclear regulations regarding Bitcoin’s status as a reserve asset. This complexity causes hesitation among corporate entities, as highlighted by Elisenda Fabrega, general counsel at Brickken, who points out that the divide in regulatory standards reflects issues in market maturity and institutional signaling. Limited disclosures on Bitcoin holdings among European companies underscore these issues, with few firms such as 21Shares AG and Bitpanda leading the way. Additionally, major European institutional investors, including pension funds, exhibit risk aversion, thus restricting engagement with Bitcoin due to unclear operational guidelines. The overall conservative nature of the EU’s investment landscape contrasts sharply with the more unified and liquid US capital market, which has seen strong retail demand for Bitcoin. As a recent product launch by an asset manager in Europe aims to bolster institutional confidence, the lingering uncertainties in the regulatory framework continue to dampen broader adoption.

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