Bitpanda: European Crypto Adoption Outpacing Bank Readiness
A new market report by Bitpanda and zeb reveals that European cryptocurrency adoption is gaining momentum, with more than 16% of private investors and 40% of business investors already holding crypto assets. The study surveyed over 10,000 investors across 13 European countries.
The report highlights a significant gap between investor interest and financial institution readiness.
While 80% of European financial institutions acknowledge crypto's growing importance, only one-third currently offer crypto services, dropping to just 19% within EU countries specifically.
Regulatory framework drives regional differences
Switzerland continues to lead European crypto adoption with 1,290 Web3-related companies, benefiting from early regulatory clarity.
The Swiss financial regulator FINMA published initial cryptocurrency guidelines in 2017, followed by comprehensive distributed ledger technology (DLT) legislation in 2021.
The EU's Markets in Crypto-Assets Regulation (MiCA), which creates a unified regulatory approach across member states, has helped harmonise previously disparate regulations.
This framework requires crypto service providers to maintain an onshore presence and obtain authorisation from EU member states.
“We believe that crypto is heading towards increased adoption and regulation, driven by frameworks like the EU's MiCAR,” says Markus Plank, Managing Director at Raiffeisenlandesbank Niederösterreich-Wien, an Austrian regional bank.
The UK, home to 1,844 Web3 and blockchain companies, currently lacks regulatory clarity but is working to establish clear regulations.
According to the report, the UK government has announced plans to implement a new regime for stablecoins and other crypto assets simultaneously, with final legislation expected in 2026.
Investor preferences and obstacles
The report identifies significant differences between private and business investors.
Private investors show balanced interest in direct and indirect investment vehicles, while business investors display a stronger preference for indirect investments, with 46% favouring this approach.
Both investor groups cite risk perception as a primary barrier to entry. For private investors, limited knowledge about cryptocurrencies (47%) and perceived high risk (42%) are the main obstacles.
Business investors point to high risk (48%) and market volatility (34%) as their primary concerns.
Alessandro Trabaldo Togna, Head of Strategic & Growth Initiatives at PKB Private Bank, notes: “Most Swiss private banking clients view crypto as non-essential, which typically make up less than 0.5% of their assets - few clients allocate 5% or more to crypto.”
The survey reveals that wealthier investors tend to use crypto for portfolio diversification, while retail investors often seek capital gains.
Among participants with liquid assets exceeding €100,000 (US$108,000), 50% either have invested or plan to invest in cryptocurrencies, compared to 30% of those with liquid assets below €100,000.
Banks underestimate client demand
Financial institutions appear to underestimate client demand for crypto services. While FIs report that only 19% of their clients show high demand for crypto products, the survey indicates actual adoption by private investors exceeds this by more than 30%.
When financial institutions do offer crypto services, they predominantly focus on basic offerings like custody (41%) and brokerage (31%), with more advanced services such as staking (7%) remaining rare.
Nearly half of the institutions with active crypto services rely on white-label solutions rather than developing in-house capabilities.
In Poland, traditional banks face particular challenges in adapting to growing crypto interest.
“Incumbent Polish financial institutions struggle to capitalise on market opportunities around crypto mainly due to regulatory resistance and infrastructural limitations, leaving them at a crossroads: innovate to stay competitive or risk irrelevance in an evolving financial landscape,” explains Antonina Karwasińska, Head of Operations & Development at Bank Pekao.
Despite varying regional approaches, the report suggests European financial institutions have an opportunity to become trusted advisors in the crypto space, especially as 47% of private investors cite limited knowledge as their primary reason for not investing.
“Financial institutions can remain competitive by embracing innovation through strategic partnerships, like Raiffeisen has done with Bitpanda. Offering secure, user-friendly access to digital assets can help build trust and engagement,” concludes Markus.
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