According to PANews, on October 7, crypto investment company 21Shares called on the European Securities and Markets Authority (ESMA) to develop standardized regulatory rules for the inclusion of cryptocurrencies in UCITS funds. The company pointed out that the current practice lacks consistency, causing confusion for retail and institutional investors across Europe. For example, Germany and Malta allow UCITS funds to include cryptocurrencies, while Luxembourg and Ireland do not.

Mandy Chiu, head of financial product development at 21Shares, explained that this fragmented approach limits the ability of retail investors to fully utilize cryptocurrencies. She added that by providing a consistent set of rules across Europe, ESMA can open up new ways for investors to diversify and increase the value of their portfolios in a regulated environment designed to protect investors. Chiu also pointed out that clear and consistent rules will help stabilize the market while promoting the growth of the cryptocurrency industry.

Therefore, 21Shares urged ESMA to develop comprehensive guidelines that would allow all EU member states to invest indirectly in cryptocurrencies. According to 21Shares, this would protect investors and broaden access to cryptocurrency investments. Notably, 21Shares’ call for regulatory clarity comes as ESMA reviews feedback from its recent consultation on the inclusion of new asset classes, including cryptocurrencies, in UCITS funds.