The European Securities and Markets Authority (ESMA) has launched an investigation into whether cryptocurrencies can be considered investment products. Having asked industry leaders and experts for their opinions on the matter and asked for feedback, the agency is currently on a waiting list.
The US spot Bitcoin ETFs far outnumber Bitcoin ETFs…
The investment trust/funds market has surpassed €12 trillion in size as ESMA considers whether cryptocurrencies can be included in “Undertakings for Collective Investment in Transferable Securities”, known as UCITS. This figure represents a value many times higher than the Bitcoin spot ETFs in the US.
UCITS, also commonly referred to as mutual funds, allow individual investors to come together to create a portfolio and hand it over to a professional manager. These funds mostly invest in stocks, bonds, liquid funds and other financial instruments. Here, ESMA is discussing whether cryptocurrencies can be included in these funds.
It a potential “game changer.”
Certainly, such a move will pave the way for the crowds to get involved in the crypto industry much more easily.
Speaking to DL News, financial regulation expert Sean Tuffy said, “If ESMA is convinced, it would be the “final step in mainstreaming crypto assets in Europe.”It a potential “game changer.” he said.
