Why is there no spot Bitcoin ETF in Europe? VanEck CEO explains

According to Cointelegraph, VanEck Europe (a U.S. asset management company) CEO Martijn Rozemuller talked about the rising interest in Bitcoin ETFs from U.S. institutional investors in an interview, painting a picture that contrasts with the European landscape. , namely investors in continental Europe, remain cautious about investing in the cryptocurrency space.

Rozemuller said U.S. investors are more willing to take experienced risks and are more accustomed to trading on exchanges than some European investors.

European investors are still addicted to the mutual funds that their banks or fund managers once recommended; mainly the retail sector in Europe, as many large financial institutions are still reluctant to use any cryptocurrency-related products in their standard portfolios; although There are many properly licensed exchange-traded notes (ETNs) in Europe, but local regulators have “clearly” mentioned that they do not support cryptocurrency-related investments.

Although the European regulatory framework does not allow investment products based solely on a single underlying asset, the enthusiasm surrounding the approval of a spot Bitcoin ETF has spread to markets outside the United States.

Rozemuller explained that Europe’s collective investment in transferable securities (UCITS) regulation is responsible for this.

“Especially under UCITS, it is impossible to get an ETF with only one exposure underneath. There are several rules to achieve diversification within this framework. From this perspective, the reality of a Bitcoin ETF is impossible, and the underlying asset An International Securities Identification Number (ISIN) is required to qualify as an ETF."

This article is reproduced with permission from: PANews

Review editor: Gao Jingyuan

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