Bitcoin adoption among European institutions is hindered by a fragmented regulatory landscape and a smaller liquidity pool compared to the United States. Following recent regulations in the US that aim to establish Bitcoin as a national asset, European companies have remained largely inactive on the topic. Experts attribute this slow adoption to Europe's complex regulations and investment mandates. According to Elisenda Fabrega from Brickken, uncertainty over Bitcoin's status as a reserve asset contributes to corporate hesitation. Additionally, European pension funds and large asset managers are reportedly cautious due to unclear guidelines and risk aversion. Despite some progress, as evidenced by the launch of Bitcoin exchange-traded products in Europe, overall investment in Bitcoin remains limited, reflecting a more conservative approach towards new financial instruments compared to the US market. This reticence to engage with cryptocurrencies poses challenges for corporate and institutional adoption in the region.

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