EU Considers Crypto Integration Into $13 Trillion Investment Market

Thursday, 9 May 2024, 09:44

The European Securities and Markets Authority is reviewing the inclusion of cryptocurrencies in the $13 trillion UCITS framework to align with investor protection goals. This bold initiative could transform the investment landscape across Europe and surpass the scale of the US's spot Bitcoin exchange-traded funds.
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EU Considers Crypto Integration Into $13 Trillion Investment Market

Tipping Point for Crypto Integration in EU's $13 Trillion Mutual Fund Framework

The European Union is at the forefront of integrating cryptocurrencies, considering including them in the $12.88 trillion UCITS mutual fund framework. This initiative by ESMA aims to expand eligible assets to incorporate crypto, seeking insights from industry stakeholders to assess the risks and rewards.

Despite the significant increase in traded instruments, the current UCITS rules established in 2007 remain unchanged. The EU is actively working on developing the MiCA regulation for market standardization and uniformity.

Investors have poured over five trillion euros into equity assets held in UCITS across Europe, leading to potential transformations in the crypto market dynamics. The challenges involved in custody and safekeeping arrangements for crypto assets are being addressed via regulatory updates and policy alignment with investor protection goals.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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