Crypto Adoption in Europe: Insights from Bitpanda and Zeb Consulting Report

The Bitpanda report, which was done in association with Zeb Consulting recently, shows a radical shift in the attitude of private as well as business investors towards cryptocurrency. The report states that 27% of private investors and 56% of business investors believe that crypto will become even more significant within three years.

This increased positivity is a function of increased acceptance of cryptocurrency as a worthwhile asset class. The research, based on the feedback of over 10,000 people from 13 EU countries, offers a detailed assessment of crypto adoption patterns. Combining survey results with qualitative analysis from financial stakeholders, the report provides a full picture of the industry’s continued development.

Rising Adoption Among Investors

The report highlights that crypto adoption is already well underway. More than 16% of private and over 40 % of business investors have already invested in crypto. Along with them, 12% private and 18% business investors are planning to enter the rising crypto market.

This data suggests that demand for crypto investments is steadily increasing, making it imperative for financial institutions to keep pace with investor interest.

However, despite this rising demand, FIs appear to be underestimating the actual adoption of crypto. Only 19% of their client base is reported to show a high demand for crypto products, indicating a gap of over 30% between perception and reality. This discrepancy presents a key opportunity for early adopters willing to meet the growing demand for crypto services.

The Response from Financial Institutions

While retail and business investors are excited about crypto, financial institutions remain as keen observers. In the report, 18% of the financial institutions surveyed intend to develop their crypto services, namely the crypto transfer component. 

Adoption is hindered, though, by reputational risk concerns, which concern 31% of the respondents, as well as overall lack of information in the business that concerns 21%, and limited resources that concern 14%.

This hesitation contrasts sharply with the rapid adoption rate among investors. As Lukas Enzersdorfer-Konrad, deputy CEO of Bitpanda, pointed out, “The data is clear, both business and retail investors are ready for crypto, and they expect secure, regulated avenues to participate. Financial institutions that delay integrating crypto services risk losing revenue to their competition or crypto-native companies. With MiCAR providing regulatory clarity, the time to act is now.”

Partnering for Crypto Solutions

Recognizing their limitations, financial institutions are increasingly turning to external partners to bridge the gap in service offerings. According to the report, 47% of surveyed FIs plan to offer crypto services through a white-label partner such as Bitpanda Technology Solutions. These partnerships allow banks and FinTechs to provide digital asset services in a compliant and secure manner without the burden of building in-house solutions from scratch.

Enzersdorfer-Konrad further emphasized, “Lack of knowledge or resources is not a barrier for institutions that want to develop a crypto offering for their clients. By working with Bitpanda, FIs can deploy a fully customizable solution in as little as six months. Our tech, expertise, regulatory and compliance experience, resources, all unlocking a new source of revenue.”

MiCAR: A Turning Point for Crypto Adoption

The application of the EU’s Markets in Crypto-Assets Regulation (MiCAR) is a major paradigm shift for the financial industry. By offering an open regulatory environment, MiCAR takes away much of the obstacles that were in the way of adoption previously. The report cautions that financial institutions that do not make the transition risk losing out on a chance for one of Europe’s fastest-changing asset classes.

With retail and business investors already making strides in crypto adoption, financial institutions must act quickly to align their services with market demand. Those who seize the opportunity early will be well-positioned to benefit from the future of digital finance.