- Martijn Rosemüller, CEO of VanEck Europe, spoke about the growing investor interest in bitcoin-ETFs in the US.
- He emphasized the key differences between the European and US cryptocurrency market.
On January 10, 2024, the Securities and Exchange Commission (SEC) approved the launch of spot bitcoin-ETFs in the US. However, European investors remain cautious about cryptocurrency-related exchange-traded products. This was told to the publication Cointelegraph by Martijn Rosemüller, CEO of VanEck Europe division.
The expert emphasized the key differences in attitudes towards the cryptocurrency sector in Europe and the United States:
“American investors are more willing to take informed risks. They are accustomed to trading on exchanges, while European institutional investors work with products advised to them by a bank or fund manager.”
According to Rosemüller, individuals, independent asset managers and family offices are interested in cryptocurrency investments in Europe. However, this is a retail environment – large institutions are reluctant to use digital asset-related products, said VanEck Europe’s CEO.
“There are a number of exchange-traded notes (ETNs) in Europe that are licensed. However, local regulators have ‘explicitly’ hinted that they will not support cryptocurrency investments,” the source claimed.
Rosemüller explained that the European regulatory framework does not allow investment products based solely on a single underlying asset. This is one of the reasons why the launch of cryptocurrency ETFs comes with a number of obstacles.
In his statement, the expert was guided by the Undertakings for Collective Investment in Securities (UCITS) directive:
“Under UCITS, it is not possible to launch a cryptocurrency ETF in Europe. The underlying asset must have an International Securities Identification Number (ISIN) to be eligible to participate as an exchange-traded fund.”
VanEck’s efforts to launch investment products with direct access to bitcoin and other cryptocurrencies in Europe required finding alternative methods. The ETN structure made it possible to offer VanEck Europe’s bitcoin-ETN to clients.
As the company’s CEO noted, this product is most similar to the bitcoin-ETF offering in the US. It offers access to bitcoins that are held in a vault at Frick Bank in Liechtenstein. The firm has reportedly launched similar products for Ethereum, Solana, Tron and Avalanche.
According to a report by CoinGecko, the U.S. accounts for 83% of the spot bitcoin-ETF market cap. The capital inflow is due to outflows from gold-based ETPs, according to ETC Group.
