The approval of Bitcoin spot ETFs in the United States has significantly impacted their global competitors, particularly in Europe. Despite increasing demand for Bitcoin, European Bitcoin ETPs have experienced net outflows of $500 million year-to-date. In contrast, U.S. Bitcoin spot ETFs, launched in January, have seen substantial net inflows totaling $13.6 billion, led by BlackRock and Fidelity's funds which charge lower management fees (0.25%).

The disparity is attributed to the lower fees of U.S. ETFs, prompting European providers to reconsider their fee structures. European Bitcoin ETPs must adapt by reducing costs to remain competitive. The Grayscale Bitcoin Trust (GBTC) and Canada's Purpose Bitcoin ETF (BTCC), which charge higher fees, have lost significant Bitcoin holdings to these new low-fee U.S. ETFs. Despite these challenges, VanEck's European business has noted small net inflows into its local Bitcoin and Ethereum ETNs since January, indicating some resilience in the European market.