EU Securities Watchdog Considers Including Crypto in Investment Products, Expanding Market Access
The European Union (EU) securities watchdog, the European Securities and Markets Authority (ESMA), is seeking input from stakeholders on the potential inclusion of crypto assets in investment products.
The move has the potential to open up a vast market for cryptocurrencies, surpassing the scope of spot Bitcoin exchange-traded funds (ETFs).
ESMA’s call for input is intended to expand the assets eligible for Undertakings for Collective Investment in Transferable Securities (UCITS), a market valued at €12 trillion.
The approval of crypto assets for the EU’s UCITS would offer broader access to cryptocurrencies within the €12 trillion market.
In the US, funds managed by major players like BlackRock and Grayscale have already attracted approximately $18 billion since the beginning of the year, playing a significant role in driving the Bitcoin rally in the first quarter of 2024.
However, approval is not guaranteed, and ESMA is seeking stakeholder input until August 7 to gather perspectives and insights.
The EU’s securities watchdog is asking stakeholders whether it should include crypto assets into investment products. The move opens the door to broader access to cryptocurrencies via UCITS, a €12 trillion market. DLNEWS https://t.co/FrH1os32wc
— Wu Blockchain (@WuBlockchain) May 9, 2024
Andrea Pantaleo, a lawyer specializing in crypto regulation and litigation at DLA Piper, believes the impact would be more substantial than that of US ETFs, as multiple fund compartments could express interest in investing small percentages of liquidity in crypto assets.
One advantage of accessing UCITS for the crypto industry is its diverse investment categories.
UCITS investments encompass various funds with different asset allocations based on their
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