The issuers of crypto exchange-traded products (ETPs), 21Shares AG, urges European regulators to adopt a unified framework for including digital assets in investment products.
As per the press release, the corporation has called upon the European Securities and Markets Authority to formulate standard guidelines for investment across the EU member states, especially UCITS funds.
There is wide divergence currently in how crypto is treated in UCITS funds across Europe. Countries like Germany and Malta allow digital assets in these funds. Others- Luxembourg and Ireland- are reluctant to move in that direction.
This, in turn, creates inconsistency and confusion, making crypto investment opportunities unavailable to all investors at varying costs and professional options in different regions.
Alignment with Global Crypto ETF Markets
21Shares cites a number of benefits that come with a harmonized approach. This approach would align Europe with markets like the US and Hong Kong. These markets have already approved Bitcoin and Ethereum ETFs.
Mandy Chiu, 21Shares’ Head of Financial Product Development, emphasized the need for clarity, stating:
By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment that is designed for investor protection.
He also mentioned that the current fragmented regulatory environment is holding Europe back from fully benefiting from the growing demand for digital assets. As per 21Shares, a clear framework would position Europe as a leader in financial innovation. It would also materialize growth in the crypto sector.
This would involve integrating crypto into regulated investment vehicles, such as ETPs. Retail and institutional investors would have access to these assets in an affordable and secure manner, ensuring market stability for long-term growth.
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