Connect with us

Crypto

European Investors Eye Crypto ETFs Amid 

European investors navigate regulatory barriers while seeking crypto exposure through ETFs and equity investments in related companies.

Claudia Fischer

Published

on

Mastering Crypto Emotions and Strategies for Success

Launching spot Bitcoin ETFs in the US has sparked curiosity among European investors. However, regulatory hurdles and a cautious stance limit the broader adoption of crypto-funded investments in Europe.

According to Martijn Rozemuller, CEO at VanEck Europe, strict European regulations do not allow for investment products tracking only a single asset like Bitcoin. The UCITS framework requires more diversification than a spot Bitcoin ETF can provide.

While Europe has some exchange-traded notes (ETNs) with crypto exposure, local regulators have discouraged direct investments. Rozemuller stated that the interest is primarily from retail investors, as many larger financial institutions remain hesitant to incorporate crypto-related products into their standard portfolios.

VanEck Europe has launched several ETNs tracking spot prices of coins like Bitcoin, Ethereum, and Avalanche. These are structured similarly to spot Bitcoin ETFs in the US but use an ETN format to comply with regulations.  

Exposure Via Crypto Company Equities 

VanEck Europe provides exposure to crypto and blockchain companies. Its Crypto and Blockchain Innovators UCITS ETF (DAPP) holds shares of listed firms like crypto exchanges and miners. 

Also Read: Bitcoin Hits $36,700 as SEC Considers Approving Spot BTC ETFs

Over 50% of the fund is comprised of Bitcoin mining companies, including Riot Blockchain and Marathon Digital. It also holds stakes in Coinbase and MicroStrategy. Firms must derive over half their revenue from crypto or hold at least 50% of assets in crypto to qualify for inclusion.

Addressing Demand from Conservative Investors

Per Rozemuller, products like ETNs appeal to conservative investors who are reluctant to handle crypto assets directly. Offering crypto exposure along with custody from established providers caters to such demographics.

Rozemuller explained that, like him, many investors saw potential in it but were not comfortable purchasing through a crypto exchange and having to manage self-custody.

While the spot Bitcoin ETF’s US launch has attracted European interest, regional barriers around direct crypto exposure still pose challenges. For now, European offerings appear limited to ETNs tracking cryptos and equity exposure to related companies instead.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *