VanEck Europe CEO: Despite Bitcoin ETF frenzy, EU maintains doubts about cryptocurrency investments

The introduction of spot Bitcoin exchange-traded funds (ETFs) in the US is having an impact on Europe, but investors in Europe remain cautious about investing in cryptocurrencies. Martijn Rozemuller, CEO of VanEck Europe, explained that US investors are more willing to take risks and have more experience trading on exchanges, whereas European investors are still more focused on mutual funds. Rozemuller highlighted the differences in attitude towards cryptocurrencies between the US and Europe, with Europe’s investors being mainly retail users, smaller wealth managers, and family offices. He also noted that European regulators have explicitly stated their disapproval of crypto-related investments. Europe’s regulatory framework, particularly the Undertakings for Collective Investment in Transferable Securities (UCITS) regulation, prohibits investment products based solely on a single underlying asset, which is why Europe does not have spot Bitcoin ETFs. Instead, VanEck Europe offers exchange-traded products (ETPs) that provide exposure to Bitcoin and other cryptocurrencies. These ETPs ensure transparent price discovery and do not use futures contracts. VanEck Europe’s Bitcoin ETP is similar to spot Bitcoin ETFs in the US and offers exposure to BTC held in cold storage. In addition to ETPs, VanEck Europe also offers the Crypto and Blockchain Innovators UCITS ETF (DAPP), which provides diversified exposure to cryptocurrency exchanges, miners, and infrastructure companies. The DAPP ETF tracks an underlying index managed by Market Vector and is rebalanced quarterly. To be included in the ETF, crypto company equities must derive at least 50% of their revenues from digital assets or related activities. Lastly, Rozemuller explained the need for cryptocurrency ETPs and ETFs, stating that some investors, particularly older generations, are not comfortable with self-custody and prefer to invest through traditional investment accounts.