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Binance Survey: Europe’s 73% Upbeat, 55% Crypto Buyers

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In a recent survey conducted by Binance across various European nations, including France, Italy, Spain, and Sweden, the findings revealed that an impressive 73% of European citizens harbor a positive outlook on the future of digital assets. The Binance survey highlighted that a majority of respondents, constituting 55%, exclusively engage with digital assets, while 24% disclosed that over half of their overall trading activities involve cryptocurrencies.

🎉Great news for BTC enthusiasts! A recent Binance survey reveals that a whopping 73% of European residents are optimistic about the future of cryptocurrencies! 🚀

The survey not only delivers encouraging news for Bitcoin [BTC] enthusiasts but also provides insightful details. Notably, the primary drivers for the mainstream adoption of cryptocurrencies in Europe, as identified by 20%, 18%, and 17% of respondents, are high returns, decentralization, and innovation, respectively.

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Binance Survey: Europe's 73% Upbeat, 55% Crypto Buyers 2

Additionally, more than half of the surveyed participants, precisely 55%, utilize cryptocurrencies for everyday purchases, with 10% making weekly crypto-related transactions. Despite the absence of exchange-traded funds [ETFs], the region’s existing exchange-traded products [ETPs] reflect Europe’s progressive stance on crypto products.

The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission [SEC] triggered a Fear of Missing Out [FOMO] wave in the European crypto community. While excitement surges in the U.S. market, European investors are reassessing their positions in response to the growing prominence of U.S. ETFs.

Binance Exec Credit Europe’s Regulatory Framework

Rachel Conlan, Chief Marketing Officer [CMO] at Binance, attributes the secure and harmonized regulatory framework in Europe as a catalyst for the mainstream adoption of digital assets.

Europe’s crypto landscape already boasts various crypto ETPs, providing retail investors exposure to digital assets. However, the recent SEC approval has induced a significant shift. BitMEX Research reported a remarkable single-day outflow of $30 million from the four largest European Bitcoin ETPs just four days after the approval of the U.S. Bitcoin spot ETF.

This trend persisted, resulting in a total outflow of approximately $106 million over five days. The evolving sentiment among investors is evident in the data presented by Cointucky Derby on day four of the ETF flow update.

Bitcoin ETFs: Europe Investor FOMO Triggers $106M Outflow

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In the wake of the US Securities and Exchange Commission’s [SEC] green light for 11 spot Bitcoin exchange-traded funds [ETFs], a wave of FOMO [Fear of Missing Out] has swept through the European crypto community. While the US market is abuzz with excitement, European investors are reevaluating their positions as the US ETFs gain prominence.

The crypto landscape in Europe already features a variety of crypto exchange-traded products [ETPs], providing retail investors with exposure to digital assets. However, the recent SEC approval has triggered a notable shift. According to BitMEX Research, just four days after the approval of the US Bitcoin spot ETF, the four largest European Bitcoin ETPs recorded a staggering single-day outflow of $30 million. This trend continued, resulting in a total outflow of approximately $106 million over five days.

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Bitcoin ETFs: Europe Investor FOMO Triggers $106M Outflow 4

The shift in investor sentiment is evident in the data provided by Cointucky Derby on day four of the ETF flow update. While US data is yet to be disclosed, European investors are moving away from high-fee BTC ETPs, contributing to a $30 million outflow across the four largest European products on that day alone.

Notably, European ETP giants like 21Shares, CoinShares, and WisdomTree have been at the forefront of this movement. Initially, when uncertainty surrounded the approval of a spot ETF in the US, market experts were banking on Europe. Despite the introduction of Europe’s first spot Bitcoin ETF on August 15, 2023, regulatory hurdles have made a Bitcoin ETF less likely in the region. However, existing ETPs demonstrate Europe’s progressive stance on crypto products.

Bitcoin ETP Giant

The ETC Group, boasting a $1.3 billion AUM market value for its BTC ETP, leads the European market. Following the SEC’s approval of the spot Bitcoin ETF, the ETC Group announced a new ETP tracking 20 leading digital assets.

While skepticism persists regarding the possibility of a spot ETF in Europe, not everyone views the situation with caution. Thomas Romain, the commercial director of crypto exchange Bitpanda in France, emphasized the significance of adapting to the evolving landscape, stating, “Any European bank or financial institution that isn’t ready to adapt is going to be left behind very quickly.” He sees the SEC-approved institutions as “massive institutions with trillions of dollars under management,” signaling a major shift in the global financial industry’s embrace of digital assets.

Coinbase’s AML Victory Ignites European Crypto Revolution

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In a significant move for the cryptocurrency industry, Coinbase, one of the world’s leading cryptocurrency exchanges, has obtained Anti-Money Laundering (AML) compliance registration from the Bank of Spain. This development marks a crucial step in Coinbase’s European expansion strategy, granting it the ability to offer its services to both retail and institutional investors in Spain.

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Source: Coinbase Blog

Spanish crypto enthusiasts now have the opportunity to securely store their digital assets on Coinbase while seamlessly trading in euros. This registration ensures that the exchange’s offerings are fully compliant with Spain’s national legal framework, ensuring peace of mind for users and regulators alike.

The timing couldn’t be better, as the appetite for cryptocurrencies in Spain continues to grow. Recent surveys show that nearly 29% of Spanish adults view cryptocurrencies as the future of finance, reflecting a widespread optimism in the country’s crypto landscape. Furthermore, cryptocurrencies have become Spain’s second-favorite payment method, outpacing traditional bank transfers.

Nana Murugesan, Vice President of International and Business Development at Coinbase, emphasized the company’s commitment to global regulatory compliance. Coinbase has been diligently securing Virtual Asset Service Provider (VASP) registrations in various European countries, including Italy, Ireland, and the Netherlands, while expanding its presence worldwide.

This achievement closely follows the approval of another major cryptocurrency exchange, Crypto.com, by the Bank of Spain earlier this year. The momentum in regulatory approvals indicates the growing acceptance and recognition of the cryptocurrency industry within the Spanish financial system.

Coinbase Leads Charge

Coinbase’s expansion in Europe aligns with a broader trend, as it recently made headlines with its attempts to acquire the defunct crypto exchange FTX Europe. This expansion strategy underscores the exchange’s determination to establish a strong foothold in the European crypto market.

However, as cryptocurrencies continue to gain traction globally, concerns over regulatory oversight persist. The European Parliamentary Research Service (EPRS) has highlighted the need for stricter regulatory frameworks for crypto markets outside the European Union. With the Markets in Crypto-Assets Regulation (MiCA) Act on the horizon, the EPRS urges a more rigorous regulatory framework for non-EU jurisdictions to safeguard the EU’s financial system and autonomy.

Coinbase’s AML registration in Spain serves as a pivotal moment not only for the exchange but also for the broader cryptocurrency industry in Europe. As regulatory clarity and acceptance continue to expand, the crypto space is poised for further growth and mainstream adoption on the continent.

Revolutionary Momentum: Europe’s First Bitcoin ETF Overcomes Delays, Ready for Debut

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European digital assets exchange-traded products have previously been structured as exchange-traded notes rather than funds. However, Europe’s first bitcoin exchange-traded fund (ETF) is set to be publicly listed this month, after experiencing a 12-month delay. Jacobi Asset Management, the firm behind the ETF, initially planned to launch it on Euronext Amsterdam in July 2022.

However, due to concerns stemming from the Terra Luna cryptocurrency crash in May 2022 and the collapse of the crypto exchange FTX in November, the launch was postponed. Now, Jacobi Asset Management has stated that the ETF is “on track” to launch this month, citing a shift in demand since last summer.

ETF shareholders hold a stake in the underlying shares of a fund, while ETN investors own debt security rather than the actual assets themselves.

Jacobi, the company behind the ETF, has emphasized the distinction between launching an ETF and an exchange-traded note.

Peter Lane, co-founder, and chief operating officer of Jacobi, expressed concerns last year about the misuse of the term ETF by ETN issuers. He criticized the dissemination of misinformation and the potential obfuscation of risks associated with acquiring and investing in ETNs.

Jacobi has highlighted that its ETF, unlike ETNs, does not involve leveraging or the use of derivatives, mitigating the potential for significant counterparty risk.

The bitcoin fund has obtained authorization in Guernsey, a jurisdiction that offers several advantages to facilitate the launch of such a fund. According to David Crosland, a partner at offshore law firm Carey Olsen, Guernsey is a specialist fund servicing jurisdiction that operates independently from the inflexibilities associated with EU membership. This independence enabled Guernsey to swiftly adapt and provide support for the ETF launch.

Crosland further noted that Guernsey’s flexibility and willingness to comprehend intricate details allowed the fund promoter to establish a regulated fund vehicle. This regulatory status sets it apart from European jurisdictions that are unable to offer similar opportunities.

Bitcoin’s Analysis in Europe

According to Michael O’Riordan, a founding partner at Blackwater Search and Advisory, the regulatory obstacles involved in launching a bitcoin ETF in Europe are significant due to bitcoin not being considered an eligible asset under Ucits rules. However, O’Riordan points out that, in practice, the ETF and ETP (exchange-traded product) are quite similar, with only some structural differences. He acknowledges that the industry has not done a good job in clearly distinguishing between the two, leading to confusion in the market.

Data from Coinbase and Bloomberg reveals that European digital assets ETPs have seen net flows of $483 million over the past 18 months, including $398 million of inflows in the third quarter of 2022.

Based on an analysis of Morningstar data by Ignites Europe, the total value of assets in European digital assets ETPs is currently €4.3 billion. However, these assets reached their highest point at the end of 2021, reaching €10.5 billion.

Portugal: Trouble In Europe’s ‘Crypto Paradise’

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Portugal’s reputation of being one of the most crypto-friendly nations is at stake as its Finance Minister Fernando Medina confirmed to tax crypto gains but has not given any specific date as to when.

According to Sapo, a local news outlet, the move was formally endorsed by Secretary of State for Tax Affairs António Mendonça Mendes on May 1. However, neither the date nor the tax rate has been publicly revealed so far.

Sources further divulged that tax would be imposed on investment gains made from cryptocurrencies such as Bitcoin.

But why the complete reversal?

In a parliamentary session, Medina explained his reasoning by referring to countries that “already have systems” in place. He said it doesn’t make sense for an asset that creates capital gains to not be taxed.

Attempting to put out a reassuring tone, the Finance minister stated that the tax would not be too stifling as it is important to create and implement a system that makes taxation “adequate,” but which does not “end up reducing revenue to zero, which is contrary, in fact, to the objective for which it exists.”

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Portugal: Trouble In Europe's 'Crypto Paradise' 7

In addition to that, Medina admitted that the taxation of cryptocurrency is more complicated than most other assets because “there is no universal definition of cryptocurrencies and crypto-assets.”

Portugal Tax Proposal Would Dissuade Foreign Crypto Investors?

The news comes as a surprise to many as it amounts to overruling the current tax law [ Est. in 2016] that said crypto gains cannot be taxed as it is not a legal tender.

Moreover, it would deal a heavy blow to many Golden Visa seekers.

For those unfamiliar, the highly popular Golden Visa program is a fast-track process for obtaining permanent residence and citizenship for non-EU nationals in Portugal.

On top of that, cryptocurrency transactions were exempted from VAT, as the Iberian nation viewed digital currencies as a form of payment rather than an asset.

It was a win-win situation for both crypto traders and investors. But now it looks like foreign investors would have to wait and watch how Portugal’s proposed tax structure would be laid out.

Grayscale Investments Unveiled Europe’s First ETF

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The world’s largest digital asset manager Grayscale Investments’ plan of expanding its footprint in the European market got a new lease of life as it announced its first European ETF called Grayscale Future of Finance UCITS ETF [ticker: GFOF].

The newly launched ETF is slated to be listed on the London Stock Exchange [LSE}, Borsa Italiana, and Deutsche Börse Xetra will also be “passported for sale” across Europe.

For those unfamiliar, Passporting allows a firm registered in the European Economic Area [EEA] to set shop in any other EEA state without further authorization.

Coming back to the press release, the investment vehicle is designed to offer investors exposure to firms across domains like finance, technology, and digital assets – as well as firms shaping the digital economy, all through the familiar ETF wrapper.

In February 2022, Grayscale listed an ETF in the United States that tracks the investment performance of the Bloomberg Grayscale Future of Finance Index.

Speaking on the historic launch, Grayscale Investments CEO Michael Sonnenshein stated,

We announced our first ETF earlier this year in partnership with Bloomberg as part of the expansion of our business. With growing global demand from both institutional and individual investors for Grayscale products, we’re thrilled to be expanding our offering in Europe through the UCITS wrapper.

“This product draws upon our historical strengths while furthering our evolution as an asset manager that helps investors build portfolios that can stand the test of time. GFOF UCITS ETF is the natural next step in our global strategic journey,” he added.

The investment firm’s plan to enter Europe’s crypto market was the result of a number of meetings held with local partners, Sonnenshein said.

Grayscale’s Tussle With SEC

The European crypto fund market has become more competitive in recent months, with the arrival of several rival exchange-traded products [ETP] being listed in Switzerland, Germany, and elsewhere by firms such as 21Shares.

As of March, 73 crypto ETPs had been granted approval in Europe, with a total of $7 billion in assets.

Apart from making a mark in this market, Grayscale is also seeking to convert its bitcoin trust into an ETF in the U.S. but has been frustrated by the Securities and Exchange Commission [SEC].

The U.S. markets regulator has so far green signaled 4 BTC future ETFs but none that invest in the crypto directly.

French asset management company Amundi sets its eyes on NFTs

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Amundi, Europe’s largest asset manager, is contemplating offering non-fungible tokens as an investment option. According to a yet-to-be-published story reviewed by Financial News, Amundi lays out its strategy to NFTs.

They stated that they couldn’t rule out the possibility that NFTs may become investable assets in the future. As per the research, Amundi is Europe’s largest asset manager, with over $1.8 trillion in assets under management.

The company hasn’t decided how to enter the NFT market but is investigating many options.

“We’re considering whether there’s a way to invest in firms that are interested in this field on a thematic basis.”

Vincent Mortier, Amundi’s chief investment officer

He went on to say that they are considering creating a special fund to invest in NFTs.

Amundi eyeing the NFT market

Digital art and collectibles, according to Amundi’s Mortier, are the most promising areas in the NFT realm.

“Some artists solely create work for the NFT market.” This market segment has some legs and is worth investing in.” He went on to say that they were easier to keep and track; therefore, they had “some virtues.”

In recent months, digital art in the form of NFTs has sold for millions of dollars and has become part of the culture. The NFT market produced more than $7 billion in trade volume in January 2022 alone, putting it on track for another record-breaking year.

Kevin O’Leary of SharkTank fame believes that the NFT market will grow to be a “larger, more fluid market” than bitcoin. Coinbase CEO Brian Armstrong is likewise optimistic about NFTs, predicting that the market would be able to compete with the company’s crypto business by 2021. American rapper Snoop Dogg is all in for NFTs and their possibilities.

Amundi’s stand on cryptocurrency

Amundi is still dubious about cryptocurrencies. According to Mortier, the firm’s attitude on crypto remains unchanged, and its interest in the NFT sector has not altered.

“On crypto, we haven’t changed our minds. It’s far too speculative, and there are a lot of unanswered questions.”

Amundi has always taken a cautious approach to cryptocurrencies and decentralized finance. The asset manager has previously cautioned customers against investing in cryptocurrency, referring to it as “an asset with no fundamental value.”

One of their articles stated that Cryptocurrencies (CCs) could not be regarded as money. They added that it is neither a proven store of value, a recognized unit of account nor a universal means of payment.

Europe should entail stricter crypto regulations, Irish MEP recommends

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Europe has been dealing with a mixed notion with regard to the crypto market. While some have been urging the European Union to bring about stringent rules for crypto, a few others are already embracing digital assets. A Member of the European Parliament [MEP] who has been representing Ireland has been reportedly yearning for stern crypto regulations in the European region.

The crypto industry has been growing without a stop. The impeccable price change of cryptocurrencies has put the entire industry on a pedestal. However, the fact that the crypto market isn’t entirely regulated keeps surfacing. Several governments across the globe seem to be taking a keen interest in the industry particularly after the demand for these digital assets soared. Chris MacManus, the MEP has been laying out proposals before the EU as he continues to long for strict laws that govern crypto.

European Union garners 45 amendments from Irish MEP

As per a recent report, MacManus hopes to bring amendments that would uphold the protection of the consumers while maintaining financial stability. Once again, the volatility of the crypto industry has surfaced as a problem. The recent volatile nature of the crypto industry has alarmed the MEP as he pointed out the same.

However, MacManus pulled in stablecoins too and suggested that they had the potentials of turning into a major threat to financial stability.

Furthermore, the MEP revealed that he had submitted a total of 45 amendments to the EU with regard to the regulation of the crypto-verse. He added,

“Under my proposals, all new and existing crypto-assets will require authorization by a ‘competent authority’ like the Central Bank. Currently, currency founders simply have to deposit a white paper that outlines the cryptos’ purpose and technology, with no scrutiny whatsoever. These white papers, under my amendments, would also require a lot more detail and transparency.”

Following China’s trail, the Irish MEP noted that mining crypto could have a negative impact on the environment. Therefore he urged the EU to evaluate the same.

The Irish MEP hopes to deliver transparency as well as security of the crypto-verse. Additionally, he also suggested that he wanted to wage a war against the use of crypto assets for illicit activities.

Uphold Will Bestow Europeans With A Crypto Card By April 2021

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Move over debit and credit cards with fiat, cryptocurrency exchange Uphold is all set to roll out its crypto enabled debit card. Several exchanges including, Paxful, Binance, BitPay have rolled out their crypto debit cards. American crypto exchange Uphold seems to be the latest to hop onto the bandwagon.

Uphold To Roll Out A Multi-Asset Crypto Debit Card

As the interest and demand for crypto are skyrocketing. Crypto platforms have been sprucing up their games. The crypto industry is finally finding a spot in the global financial scene and Uphold seems to be aiding this process. In a recent blog post, the exchange announced that it had bagged a prominent issuer of debit and credit card, Optimus Cards UK Limited. With this acquisition, Uphold intends to roll out a multi-asset crypto debit card, which will reportedly be the first of its kind.

As the platform is planning to launch the card starting from April 2021, this card would be limited to the citizens of Europe. The crypto enabled debit card would be available on the Optimus platform.

JP Thieriot, CEO of Uphold revealed that the platform had secured a full Electronic Money Institution [EMI] license. Thieriot added,

“The combination of Optimus’s tech-forward card platform and Uphold’s unique multi-asset wallet should create a compelling product. Very soon our European customers will be able to receive part or all of their salary in Bitcoin – or any asset of their choice – and spend it using Uphold Cards issued through Optimus.”

While the cost of the acquisition is still under wraps, the platform is already providing a similar service in the US. The users of the US have several programs including crypto back incentives. The CEO said, ‘The card has already proved a hit with our U.S. customers offering a unique combination of utility, convenience and crypto-back rewards.’ The latest card could entail several cryptocurrencies, equities as well as precious metals.

The exchange recently made news after it was one among the very few platforms that retained its support for XRP amidst the altcoin’s battle with the SEC.

Berlin based Solarisbank has plans to dominate European digital sector with help of Samsung

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Digital financial ecosystems have come a long way since being an extremely niche industry a couple of years back. Major organizations like Solarisbank were now on the brink of creating a new financial world where traditional concepts meet the benefits of the digital sphere.

Just recently, Berlin-based Solarisbank revealed that they would be expanding to several European regions by the end of 2021. This growth was synonymous with the growing adoption rate of the digital economy around the world.

Solarisbank chief executive Roland Folz claimed that the move to other countries was an important step in terms of global acceptance.  The organization was also the first bank in Germany to shift toa completely cloud-based system. Solarisbank first shot to fame for its “banking as service” model which drew in some big names from the tech industry.

Samsung remains one of Solarisbank’s largest clients with the South Korean bigwig using the former’s technology for Samsung Pay transfers. The rapid rate of capital movement can be handled by Solarisbank now because of the movement from traditional architecture to Amazon Web Services [AWS].  All of Solarisbank’s core systems were moved to the web hosting service within a year of the company’s launch.

The expansion announcement was considered a major landmark in Solarisbank’s history with Mr. Folz adding:

“We want to grow with our existing partners and ensure that they can spread their business and value proposition across Europe. The ambition level could be higher. The opportunity is there to build a substantial financial powerhouse for any of the big techs out there.”

Samsung’s reach in the global technology sphere contributes to a major portion of Solarisbank’s growth. Statistics showed that there are over 80 million Samsung mobile devices present in Europe, a staggeringly large playing field. Even grabbing a small percentage of this market share would give Solarisbank;’s the major foothold it needs in the continent. This tactic could also help Solarisbank grab a larger piece of the bank account’s pie, a number rising rapidly daily.