The European Securities and Markets Authority is the EU’s financial The watchdog is reviewing whether to allow Bitcoin into the region’s €12 trillion mutual fund market.
JUST IN: 🇪🇺 EU Securities Authority is exploring adding #Bitcoin and Crypto exposure to the €12T investment market.
EU gears up🙌 pic.twitter.com/kVYZrrEFCx
— Bitcoin Magazine (@BitcoinMagazine) May 9, 2024
ESMA seeks feedback On expanding the eligible assets of Undertakings for collective Investment in transferable securities (UCITS). Over 75% of EU citizens’ funds are invested in these mainstream retail products.
Bitcoin would be the first major asset class to have a mainstream European access if it were approved by UCITS. Fund managers can then allocate small amounts of Bitcoin in the framework.
ESMA will be collecting input up until the 7th of August before making any recommendations. This move is a result of Bitcoin ETF The approvals of the US and Hong Kong have indicated a global shift in regulatory policy.
Still, obstacles remain regarding Bitcoin custody under existing EU regulations. If you are following rules like those in the Markets in Crypto-Assets Act (MiCA), coordination may be required on asset separation.
ESMA’s proactive attitude acknowledges Bitcoin’s rising relevance throughout Europe.
Andrea Pantaleo is a lawyer. states Recent Bitcoin ETF launches could have a greater impact. UCITS, while focusing on Bitcoins in particular, includes a variety of fund types and asset allocations.
Approval wouldn’t create separate Bitcoin funds. The approval would also unlock trillions in UCITS to cover modest Bitcoin exposure.
The EU could benefit from this by increasing adoption. Bitcoin is still a ways off from being included in the EU, given its strict standards.
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Source: bitcoinmagazine.com
