How Americans and Europeans Compare with Each Other in Bitcoin and Crypto Investment

Over the years, the United States has always been ahead of the pack vis a vis financial innovation and response. Most complex economic features and instruments usually stem from the US before spreading out. Today Bitcoin has risen through the ranks to become the most prominent cryptocurrency globally with a massive market cap.

However, the US financial market offers some resistance when it comes to crypto ETPs. Your ability to trade is significantly affected by the side of the globe you are trading from. In Europe, the story of crypto adoption tells the opposite tale. European ETP issuers have flooded the market to try and satisfy demand. The exponential growth of ETPs services and innovations in the crypto market has resulted in confidence growth among investors that cryptocurrencies are very credible.

Typically, data released by Fidelity a while back indicates that the amount of crypto held by Europeans is almost twice that in the hands of Americans. The European crypto industry’s response to every regulatory huddle has been quite aggressive. One such industry is a Swiss regulator by the name FINMA, which announced that it would allow all crypto ETPs listings. Meanwhile, FCA, a UK-based regulator, prohibited the sale of all crypto ETNs.

Kraken is the first crypto company to be given a banking license in the US. The banking license allows Kraken to overcome hurdles of patchy compliances in all American states. As much as cryptocurrencies, such as Bitcoin, are more successful in Europe, some countries are yet to regulate crypto. An example of one such country is Ireland. Cryptocurrency companies in Ireland have opted to look for banking services outside the country.

Access has a significant impact on the demand for crypto. However, other factors can also explain the differences between crypto adoption in the US and Europe. In Europe, for instance, saving money is vital. Most investors trading from European Union countries are aware of privacy-related issues tied to companies such as Facebook.

Early this year, Sam Bankman Fried, founder crypto exchange FTX Bahamas, hinted at giving away all his billion crypto fortune. Better still, FTXs are traded as individual securities on a stock exchange, while ETFs trade as shares on a stock exchange. The main difference is that FTXs are limited to specific companies and sectors, while ETFs allow investors to invest in various sectors simultaneously.

More, there’s no denying that European investors are more exposed to cryptocurrencies than their American counterparts. Furthermore, this exposure comes at a very affordable cost as compared to the rates offered to investors in America. However, recent development in the American crypto market promises a different trajectory. In other parts of the world, e.g., Asia, there are quite some positives to take home. DBS, the largest bank in Singapore, announced that it had plans to incorporate a cryptocurrency exchange firm.

Even though the US cryptocurrency is resisting crypto adoption, the demand is growing. However, adopting a crypto ETP or Bitcoin ETP is still illegal in the US. The Securities and Exchange Commission has rejected all applications for such services. The best solution to this is offered by the GBTC (Grayscale Bitcoin Trust). However, the GBTC is limited in that it acts like an ETF but lacks vital qualities provided by an ETF.

As of yet, Europe is still making more considerable strides regarding adopting crypto and Bitcoin. The high demand in Europe has caused ETPs issuers to push through regulatory boundaries to deliver ETP services.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.