Blab Crypto
Estonias Crypto-Asset Sector Shrinks, Yet Profits Surge in Q1 2026
Estonia’s crypto‑asset sector shrank in numbers but turned a profit boom in Q1 2026. The Bank of Estonia announced on 11 June 2026 that only 32 licensed crypto‑asset service providers (CASPs) were operating at the end of the quarter, down from 41 a year earlier.
Client assets fell 42 % year‑on‑year, dropping from €1.19 billion in 2025 to €704 million in Q1 2026. The contraction was driven by several providers shutting down, a broader fall in crypto‑asset prices, and the sale of holdings by the firms that remained. These assets made up 87 % of the CASPs’ balance sheets, and 92 % of them were owned by private individuals. Estonian residents represented only 2 % of the total client assets, underscoring the sector’s largely international reach.
Despite the contraction, the sector’s financial performance sharpened dramatically. Sales revenue for the quarter rose to €82 million, compared with €35.3 million a year earlier and €22 million in Q4 2025. Profit leapt to €68.4 million, a stark increase from €0.7 million a year earlier and €4 million in the previous quarter.
Asset holdings at the end of Q1 2026 were €386 million in Bitcoin, a 50 % decline from the same period last year; €154 million in Ethereum, down 34 %; and €442 million in other crypto assets, down 46 %. Total transaction turnover for the quarter was €2.16 billion, €1.06 billion less than the previous quarter and €2.41 billion lower than Q1 2025.
During the quarter, crypto assets worth €635 million were purchased using client funds, €791 million were sold for cash, and €735 million were exchanged for other crypto assets.
Estonia has long been a hub for crypto licensing, issuing thousands of Virtual‑Asset Service Provider (VASP) licences under a relatively light‑touch regime before the EU’s Markets in Crypto‑Assets (MiCA) regulation took effect in December 2024. The country’s Financial Supervisory Authority now issues CASP licences that allow providers to operate across the EU. In May 2026, the first Estonian bank, LHV Pank, received a CASP licence, marking a milestone for the sector.
The Bank of Estonia will publish updated statistics for Q2 2026 on 15 September 2026. Analysts will be watching whether the decline in licensed firms and client assets continues, and how the sector’s profitability trajectory evolves in the context of MiCA compliance and cross‑border service provision.
The latest figures illustrate a sector that is contracting in size but expanding in profitability, reflecting broader market dynamics and regulatory shifts in the European crypto landscape.
Client assets fell 42 % year‑on‑year, dropping from €1.19 billion in 2025 to €704 million in Q1 2026. The contraction was driven by several providers shutting down, a broader fall in crypto‑asset prices, and the sale of holdings by the firms that remained. These assets made up 87 % of the CASPs’ balance sheets, and 92 % of them were owned by private individuals. Estonian residents represented only 2 % of the total client assets, underscoring the sector’s largely international reach.
Despite the contraction, the sector’s financial performance sharpened dramatically. Sales revenue for the quarter rose to €82 million, compared with €35.3 million a year earlier and €22 million in Q4 2025. Profit leapt to €68.4 million, a stark increase from €0.7 million a year earlier and €4 million in the previous quarter.
Asset holdings at the end of Q1 2026 were €386 million in Bitcoin, a 50 % decline from the same period last year; €154 million in Ethereum, down 34 %; and €442 million in other crypto assets, down 46 %. Total transaction turnover for the quarter was €2.16 billion, €1.06 billion less than the previous quarter and €2.41 billion lower than Q1 2025.
During the quarter, crypto assets worth €635 million were purchased using client funds, €791 million were sold for cash, and €735 million were exchanged for other crypto assets.
Estonia has long been a hub for crypto licensing, issuing thousands of Virtual‑Asset Service Provider (VASP) licences under a relatively light‑touch regime before the EU’s Markets in Crypto‑Assets (MiCA) regulation took effect in December 2024. The country’s Financial Supervisory Authority now issues CASP licences that allow providers to operate across the EU. In May 2026, the first Estonian bank, LHV Pank, received a CASP licence, marking a milestone for the sector.
The Bank of Estonia will publish updated statistics for Q2 2026 on 15 September 2026. Analysts will be watching whether the decline in licensed firms and client assets continues, and how the sector’s profitability trajectory evolves in the context of MiCA compliance and cross‑border service provision.
The latest figures illustrate a sector that is contracting in size but expanding in profitability, reflecting broader market dynamics and regulatory shifts in the European crypto landscape.
