Bitpanda Technology Solutions: Exploring crypto adoption in Europe

The crypto adoption report by BTS and Zeb Consulting surveyed 10,000 investors across 13 European countries, providing an in-depth analysis of how investors and financial institutions are accelerating crypto adoption throughout the region. We explore the key insights from the report, including the current state of European crypto investment, the factors shaping retail and institutional adoption, and what financial institutions need to consider as the market continues to evolve.

Key insights from the report:

• €25 trillion in liquid assets across Europe: With 411 million private and institutional investors, Europe represents a significant opportunity for digital asset adoption.
• Crypto adoption is gaining traction: 1 in 7 retail investors already hold crypto, 12% plan to invest, and 50% of wealthy investors are engaged or planning to invest.
• Investors are moving beyond speculation: 43% invest in crypto for long-term growth or diversification, showing a shift toward more strategic use of digital assets.
• Perceptions are evolving: 33% of retail investors view crypto as a unique asset class, and interest is broadening beyond Bitcoin.
• Knowledge gaps and risk perceptions remain barriers: 47% of retail investors cite limited knowledge, and 42% still view crypto as too risky.
• CEE region shows strong future potential: While the UK, Germany, and France lead in volume, Poland and Central & Eastern Europe are projected to grow at a 5.8% CAGR by 2027.

The European investor market

A core takeaway from the study was the underlying power of the European investor market – around 411 million private and institutional investors hold over €25 trillion in liquid assets.

The UK, Germany and France lead in total investment volumes, accounting for €15.7 trillion in liquid assets. Meanwhile, Poland and the Central and Eastern European (CEE) region are emerging as high-growth markets, with investable assets projected to grow at a 5.8% compound annual growth rate (CAGR) by 2027.

The rising demand for cryptocurrency

European retail investors have the financial means for significant investment in the digital assets market, and there is now a clear growing appetite for cryptocurrency investment:

• 80% of retail investors held crypto between 2015 and 2024
• Around 1 in 7 retail investors currently hold crypto
• 12% of retail investors are looking to invest in crypto in the future
• 50% of wealthy investors (those with over €100,000 in liquid assets) are already invested in crypto or plan to invest

Crypto’s evolving perception

The perception of crypto assets by retail investors is firmly in positive territory as participants indicated acknowledgement of the growth potential and opportunities that cryptocurrencies can offer. However, these private investors are particularly reserved in their investment activities compared to their business counterparts. The latter has a combined 40% stating that they are or were invested in cryptocurrencies compared to 15% of private investors.

Overall, there’s a strong sentiment that cryptocurrency is an attractive investment option going forward:

• 33% of retail investors recognise crypto as a unique asset class
• Only 15% of retail investors (strongly) agree that Bitcoin is the only relevant cryptocurrency
• 29% of retail investors view other cryptos as relevant, indicating their investment flexibility

While crypto’s perception among retail investors is increasingly positive, a significant portion—67%—remain on the sidelines either without a current crypto investment or with no plans to invest. This gap presents a strategic opportunity for financial institutions to engage and educate investors, addressing their concerns and expanding access to digital assets.

Wealth level impacts crypto investment

As wealth increases, so does the likelihood of crypto investment—but the way investors allocate crypto in their portfolios differs by wealth bracket. This insight is critical for financial institutions looking to tailor crypto offerings, as high-net-worth individuals may seek diversified exposure. At the same time, everyday investors often dedicate a larger portfolio share to crypto.

Among those surveyed, approximately 50% of retail investors reported a crypto allocation exceeding 20% yet around half of these high-crypto-share portfolios belonged to participants with liquid wealth below €100,000. This suggests that wealthier private investors tend to view crypto as an additional diversification, while lower-wealth retail investors seek fast capital gains.

The lower-wealth retail investor (liquid wealth below €100,000) often has a higher share of crypto in their portfolios. However, high-net-worth investors (over €250k liquid assets) tend to dedicate a smaller portion of their portfolio to cryptocurrencies.

• 50% of high-net-worth retail investors have invested or plan to invest in cryptocurrencies
• In contrast, 30% of everyday retail investors have invested or plan to invest in cryptocurrencies
• Around 50% of retail investors report a crypto allocation exceeding 20%

A shift from speculation to strategic investing

Contrary to the previous mainstream perception of cryptocurrency investors taking huge swings on speculative assets, this latest report indicates a maturing pool of investors. European retail investors are no longer just speculating on price swings and hype; they are actively integrating crypto into their broader investment holdings, leveraging new financial products offered by institutions and diversifying their portfolios.

• 43% of retail investors have or would choose to invest in crypto for investment purposes
• 35% of retail investors choose crypto for portfolio diversification
• Only 31% of retail investors invest due to speculation

The barriers to increased crypto adoption

While many of the participants recognised cryptocurrencies as a promising asset class, several reasons remain that cause hesitancy when deciding to invest in crypto.

Lack of knowledge

Limited knowledge was the primary investment obstacle for retail investors, and it resonated across all regions. When investigated further, it wasn’t just a lack of knowledge in crypto that hampered investment but a broader issue with investment-related education among retail investors.

• 48% of retail investors described their general investment knowledge as ‘limited’, and around 40% classified it as ‘basic’
• 47% of private investors cited ‘limited knowledge’ as a key reason for their reluctance to invest in crypto

Perceived high-risk factor

Considering the amount of positive media attention in recent years and strong price movements of major assets like Bitcoin, 42% of European private investors still perceive crypto as excessively risky.

Though the perceived high-risk factor characterises a common theme throughout Europe, the national attitudes of investors can differ. For example, while Polish investors also cited high risk as one of their main reasons for not investing, many still invest in crypto – around 3 million compared to 2 million traditional investment accounts. Moreover, in 2018, 14.9% of Polish investors expressed interest in crypto; this increased to 22% by 2024 across the overall investor population.

Regulatory concerns

Though a significant portion of retail investors (19%) across Europe viewed unclear regulation as an important reason for not investing in crypto, the research indicates that it is a secondary consideration for private investors compared to other factors like risk and market volatility.

However, the UK is an outlier with 29% citing unclear regulation as a significant barrier. This can be explained by years of cautious regulatory developments and the future inapplicability of MiCAR in the UK.

What are the implications for financial institutions?

The integration of cryptocurrency into the financial ecosystem is rapidly accelerating in Europe, reshaping the economic landscape and offering transformative opportunities for financial institutions and investors alike. The findings of the survey indicate that crypto is set to make a huge splash in Europe, with 411 million retail investors who possess an overall positive sentiment towards crypto and an investor market worth over €25 trillion. The potential is huge, and financial institutions in Europe can expect accelerated crypto adoption.

Nonetheless, some key challenges need to be addressed, particularly around closing knowledge gaps, to tap into this potential. The survey revealed that many investors still seek additional support in understanding crypto and assessing associated risks. Therefore, improving financial literacy should be considered a fundamental focus for the long-term success of financial institutions as it will encourage the future adoption of crypto assets across all markets. Ultimately, education has a crucial role to play in demystifying crypto and building investor confidence.

Retail crypto adoption is rising—What’s the next step?

As retail interest in crypto continues to grow, financial institutions have a unique opportunity to bridge the gap between demand and accessibility. By integrating secure, compliant and scalable crypto investment solutions, institutions can position themselves at the forefront of this evolving market.

Despite high adoption rates among both private and business investors in Europe, many financial institutions still underestimate the demand. While 80% of surveyed institutions acknowledge the growing importance of digital assets, fewer than 50% currently offer crypto services. This gap in traditional banking solutions has driven both retail and business investors toward crypto-native platforms. However, with 30% of investors expressing a preference for accessing crypto through their trusted banking partner, the opportunity for financial institutions to step in is clear.

With crypto adoption accelerating across Europe, financial institutions that act now will be best positioned to capture this growing market. Bitpanda Technology Solutions empowers banks, fintechs and investment platforms with the secure, scalable infrastructure needed to bridge the gap between demand and accessibility. 

Get in touch today and discover how our solutions can help you stay ahead of the curve.

Download report

Disclaimer

This article is distributed for informational purposes, and it is not to be construed as an offer or recommendation. It does not constitute and cannot replace investment advice.

Bitpanda does not make any representations or warranties as to the accuracy and completeness of any information contained herein. 

Investing carries risks. You could lose all the money you invest.