The European Securities and Markets Authority (ESMA), the EU’s financial supervisory body, to review Whether to allow Bitcoin into the region’s €12 trillion mutual fund market.
Just in: 🇪🇺 EU securities regulators considering additions #bitcoin and crypto exposure to the €12 trillion investment market.
The EU is preparing 🙌 pic.twitter.com/kVYZrrEFCx
— Bitcoin Magazine (@BitcoinMagazine) May 9, 2024
Esma ask for feedback Regarding the expansion of eligible assets for collective investment projects in transferable securities (UCITS). These mainstream personal investment products account for more than 75% of the funds held by EU nationals.
If Bitcoin is approved by UCITS, it will become mainstream access for the first time in Europe, allowing fund managers to allocate smaller portfolios to Bitcoin within a larger framework.
ESMA is gathering views until August 7 before making recommendations.The movement is as follows Bitcoin ETF Approvals in the United States and Hong Kong signal a warming of global regulatory attitudes.
Still, obstacles remain when it comes to storing Bitcoin under existing EU regulations. Regulations such as the upcoming Markets in Crypto Assets (MiCA) Act may require adjustments regarding asset segregation.
Nevertheless, ESMA’s proactive approach recognizes Bitcoin’s growing relevance across Europe.
Attorney Andrea Pantaleo state The impact could exceed the recent launch of a Bitcoin ETF. Although these products are focused on Bitcoin, UCITS is comprised of a variety of fund types with different asset allocations.
Therefore, approval does not necessarily create an independent Bitcoin fund. However, this would free up trillions of dollars of UCITS with modest exposure to Bitcoin.
This could significantly increase liquidity while facilitating EU adoption. However, given the EU’s strict standards, there is still a long way to go before Bitcoin is included.
