% 4.25
BTC Dominance:
% 0.13
Market Cap:
$2.44 T
% 3.67
Fear & Greed:
74 / 100
$ 69.616
BTC Dominance:
% 54.4
Market Cap:
$2.44 T

Cryptocurrency Goes Mainstream? EU Explores UCITS Integration

Eu Cryptocurrency

The European Securities and Markets Authority (ESMA), which is the security watchdog of the European Union, is aggressively investigating the idea of incorporating cryptocurrencies into the enormous capital market of twelve trillion euros. For the purpose of gaining a better understanding of the situation, the European Securities and Markets Authority (ESMA) has reached out to professionals in the industry to inquire about their perspectives on the question of whether or not undertakings for Collective Investment in Transferable Securities (UCITS) can incorporate a variety of asset classes. These asset classes include crypto assets, commodities, structured loans, emission allowances, catastrophe bonds, and individual stocks.

Mutual funds, exchange-traded funds, and money market funds are all included in the category of UCITS, which are specific types of investment funds that are designed to simplify and protect investment transactions. Despite the fact that these funds are subject to EU laws, investors from outside the EU are able to take part in them. Unlike spot Bitcoin exchange-traded funds (ETFs) that are entirely focused on cryptocurrency, UCITS investments include a wide range of fund types, each of which has its own asset allocation based on risk profiles. In the event that it is authorized, it is highly improbable that there will be independent UCITS funds that allocate one hundred percent of their assets to cryptocurrency. As an alternative, numerous UCITS funds would most likely invest a certain percentage of their assets in cryptocurrency.

This decision by the European Securities and Markets Authority (ESMA) coincides with the recent licensing of exchange-traded funds (ETFs) for spot Bitcoin in both the United States and Hong Kong. It would appear that regulatory bodies all over the world are gradually becoming more sympathetic to the idea of extending exposure to cryptocurrencies into more conventional investment avenues.

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We have extended the deadline for feedback submissions to the stakeholders participating in UCITS until August 7th. The incorporation of crypto assets within UCITS would be a big milestone if it were to be accepted. This would possibly establish UCITS as one of the largest mainstream investment vehicles with exposure to cryptocurrencies.

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