According to PANews, the European Securities and Markets Authority (ESMA), the EU securities regulator, is consulting the industry and experts to explore whether crypto assets should be included in investment products. This move may open up a broader market for cryptocurrencies, far exceeding the market size of spot Bitcoin ETFs.
The plan aims to expand the scope of application of UCITS (EU collective investment schemes for transferable securities), which has a market size of up to 12 trillion euros. If this move is implemented, it will be a key step in the mainstreaming of crypto assets in Europe, and financial regulatory expert Sean Tuffy called it a "game changer" potential.
ESMA’s consultation deadline is August 7, and whether it will be approved remains to be seen. DLA Piper lawyer Andrea Pantaleo said that the impact of this move will go far beyond US ETFs, as many fund sectors may invest part of their liquidity in crypto assets.