VanEck CEO Jan van Eck recently discussed the current landscape of the company's cryptocurrency exchange-traded products (ETPs) in Europe during an insightful interview with CNBC. Van Eck highlighted that VanEck currently offers 12 token-based products in the European market, amassing a total scale of these ETPs that reaches an impressive 2 billion euros.
However, he noted a critical point that a substantial portion of this investment is sourced from individual investors, indicating limited participation from institutional investors at this stage. It appears that wealth management firms have not yet ventured into allocating resources for these burgeoning products and so far have refrained from taking any tangible actions within this space. Furthermore, Van Eck pointed out that there are very few private banks that have granted approval for investments in prominent cryptocurrencies such as Bitcoin or Ethereum.
This hesitance to engage with major cryptos is mirrored in the broader trend, as there have been no noteworthy movements concerning alternative crypto assets either. This scenario suggests a cautious and measured approach being adopted by institutional players and wealth management companies toward the cryptocurrency landscape in Europe.
The market remains under observation while waiting for a more pronounced engagement from these sectors, which could lead to substantial growth in the uptake of cryptocurrency ETPs moving forward..