The European Securities and Markets Authority (ESMA) is gathering opinions from industry experts on adding crypto assets to UCITS investment funds. This initiative could give cryptocurrencies access to Europe’s €12 trillion investment market.
Stakeholders can submit their feedback by August 7 as ESMA is interested in their input on exchange-traded products including ETFs with crypto assets as an underlying.
The proposal suggests that several funds could allocate a small portion of 1-2% to crypto rather than creating an entirely focused fund on crypto.
This represents a major change, as EU regulations currently prevent dedicated crypto-centered investment products, requiring investors to use exchange-traded notes for such exposures.
ESMA’s questioning comes as crypto further integrates into mainstream financial products, with the recent approval of Bitcoin ETFs in the US and Hong Kong.
The EU has been writing its Markets in Crypto Assets Regulation (MiCA) with all due seriousness. This is a major legal framework for cryptocurrencies aimed at consumer protection.
This consultation reflects the EU’s ongoing commitment to adapting its regulatory environment to accommodate the growing influence of digital assets in global finance.
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