21Shares Calls for Unified Crypto Rules in UCITS Funds to Boost EU Investment

21Shrs hs clld for unifid EU rgultory frmwork for crypto ETPs.
Currnt EU rgultions for crypto ETPs vry cross countris, cusing confusion for invstors.
A unifid frmwork would provid clrity for invstors nd nsur consistnt invstor protction.

Cryptocurrncy xchng-trdd product (ETP) issur 21Shrs urgs Europn Union (EU) rgultors to ddrss inconsistncis in th currnt frmwork for including digitl ssts in invstmnt products. Th compny rgus tht unifid rgultory pproch is ssntil to unlocking its full potntil for Europn invstors.

On Octobr 7, 21Shrs clld on th Europn Scuritis nd Mrkts Authority (ESMA) to stblish clr nd consistnt st of ruls for UCITS (Undrtkings for Collctiv Invstmnt in Trnsfrbl Scuritis) funds to incorport crypto ssts. UCITS funds r populr invstmnt vhicl for Europn rtil invstors, ncompssing products lik ETPs nd xchng-trdd funds (ETFs).

Th currnt rgultory lndscp in th EU vris significntly, with som countris lik Grmny nd Mlt prmitting crypto holdings within UCITS funds whil othrs lik Luxmbourg nd Irlnd do not. This disprity crts confusion nd hindrs invstor ccss to digitl ssts through rgultd chnnls.

Th currnt ptchwork of rgultions is crting confusion nd prvnting rtil invstors from ccssing th full potntil of crypto ssts, sttd Mndy Chiu, Hd of Finncil Product Dvlopmnt t 21Shrs.

Crypto Regulation Gaps Raise Risks

Th lck of consistnt pproch cross EU mmbr stts riss concrns bout invstor protction. Invstors sking xposur to digitl ssts my b forcd to xplor unrgultd vnus, potntilly incrsing risk nd rducing trnsprncy. Additionlly, unifid frmwork would provid much-ndd clrity for both rtil nd institutionl invstors, llowing thm to mk informd dcisions bout incorporting virtul currncy into thir portfolios.

21Shrs mphsizs th mturing ntur of th digitl mrkt, noting ris in trnsprncy nd liquidity tht prllls trditionl finncil instrumnts. Mjor globl xchngs nd custodins hv implmntd robust dt rporting nd sfgurds, diminishing risks lik hcking nd mrkt mnipultion. Ths dvncmnts pv th wy for th inclusion of digitl ssts within UCITS funds through rgultd ETPs, offring invstors cost-ffctiv nd scur mns to gin xposur.

Streamlining the Path for Crypto in Europe

21Shrs cll to ction coms t pivotl junctur. ESMA lunchd consulttion procss in My 2024 to rviw ligibl ssts for UCITS funds, which concludd in August. Th rgultor is currntly vluting th fdbck rcivd nd formulting n pproch to potntil chngs in th rgultory frmwork.

By stblishing clr nd consistnt guidlins for indirct crypto xposur vi ETPs, ESMA cn unlock nw vnu for Europn invstors to divrsify thir portfolios. This mov would bnfit invstors nd position Europ s ldr in finncil innovtion, ligning it with othr progrssiv mrkts lik th Unitd Stts nd Hong Kong.

21Shrs, mjor plyr in th ETP spc with ovr 40 products listd cross 11 xchngs. Thir US-bsd spot Bitcoin ETF, co-mngd with ARK Invst, lrdy bosts $2.64 billion in ssts undr mngmnt, indicting strong invstor pptit for rgultd crypto xposur. A unifid EU frmwork pvs th wy for furthr xpnsion nd rinforcs Europs potntil to bcom globl hub for crypto innovtion.

Text source: TronWeekly

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