21Shares calls on EU regulators to unify cryptocurrency ETF rules to address regional legal fragmentation

ChainCatcher news, according to CryptoSlate, based on a statement from October 7, the crypto investment firm 21Shares has called on the European Securities and Markets Authority (ESMA) to establish standardized regulatory rules for including cryptocurrencies in Undertakings for Collective Investment in Transferable Securities (UCITS) funds. The company pointed out that the current approach lacks consistency, leading to confusion among 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 Products Development at 21Shares, explained that this fragmented approach limits retail investors' ability to fully benefit from cryptocurrencies. She added, "By providing a consistent set of rules across Europe, ESMA can open new avenues for investors to diversify and enhance their portfolios in a regulated environment designed to protect investors." Chiu also noted that clear and consistent rules would help stabilize the market while promoting the growth of the cryptocurrency industry.

Therefore, 21Shares urges ESMA to develop comprehensive guidelines that allow all EU member states to invest indirectly in cryptocurrencies. According to 21Shares, this would protect investors and broaden the channels for cryptocurrency investment. It is worth noting that 21Shares' call for regulatory clarity comes as ESMA reviews its recent consultation feedback on including new asset classes, including cryptocurrencies, in UCITS funds.