EU Regulators Mull Crypto Exposure for Trillion-Euro Investment Funds
The European Securities and Markets Authority (ESMA), the EU financial and crypto markets watchdog, is seeking industry feedback on whether the UCITS funds investment market should be expanded to include crypto.
Should crypto-asset exposure be added to a €12 trillion investment product market in the EU?
Experts have until tomorrow (August 7) to provide feedback to ESMA on the merits of allowing direct UCITS exposure to crypto-assets (link in comments).
UCITS funds have €12 trillion… pic.twitter.com/s5rJnJRaUA
— Patrick Hansen (@paddi_hansen) August 6, 2024
UCITS, or Undertakings for Collective Investment in Transferable Securities, are regulated investment products created to protect investors. Comprising mutual, exchange-traded or money market funds, UCITS are governed by EU regulations but accessible to global investors. With €12 trillion in assets under management, UCITS are the most common investment product in the EU .
Introducing crypto assets into this vast market could significantly impact both traditional finance (TradFi) and the cryptocurrency industry. And with its ‘Call for Evidence’ , ESMA aims to address the uncertainties surrounding the eligibility of various crypto assets under the UCITS framework in order to assess the potential risks and benefits of such a big move.
The potential opening of UCITS funds to cryptocurrencies is not the only sign of interest in crypto assets from the EU. Capula Management, Europe’s fourth-largest hedge fund, invested $464 million in spot Bitcoin (BTC) exchange-traded funds (ETFs), according to public disclosures filed on Aug. 5.
Capula is based in the United Kingdom and manages upward of $30 billion in investor assets. According to the filing, Capula owns shares worth
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