Why are spot Bitcoin ETFs not listed in Europe?

Although the listing of spot Bitcoin ETFs on stock exchanges in the USA after years of approval process has a positive impact on the sector, investment movements continue to remain limited in Europe.

Speaking to Cointelegraph, VanEck Europe CEO Martjin Rozemuller emphasized the difference between US and European investor profiles as the reason for this situation:

“US investors are more willing to take risks. Apart from this, while Europeans are used to transacting through banks and funds, stock exchanges are more preferred in the USA.”

Rozemuller stated that the majority of crypto investors in Europe make individual transactions, and that major players are not yet motivated to add crypto to their portfolios.

“Authorities are not pro-crypto”

While various asset issuers in the European region are known to offer crypto ETPs (exchange traded products), these instruments work differently than ETFs in the US. The VanEck executive is of the opinion that although ETPs are traded on European exchanges, financial regulators are cold on crypto investments.

Rozemuller commented that spot Bitcoin ETFs are not listed on exchanges due to the UCITS regulation that most countries in the European region comply with.

If we look at it from this perspective, Bitcoin ETFs are not possible in Europe with current regulations. “In order for the underlying asset to be included in ETFs, it must have a security identification number.”