21Shares Calls for Unified Crypto Rules Across EU

Crypto exchange-traded product (ETP) issuer 21Shares has called on European Union regulators to implement a unified framework for including crypto assets in investment products.

Yesterday, 21Shares asked the European Securities and Markets Authority (ESMA) to adjust its rules to allow crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds, which cater to retail investors.

The company noted inconsistencies in the current EU regulations for including crypto in UCITS funds, with some countries allowing it while others do not. “Germany and Malta allow UCITS funds to hold crypto, but other countries such as Luxembourg and Ireland don’t,” said 21Shares in a statement. According to the company, these inconsistencies cause confusion for investors across the region.

21Shares emphasized the need for a consistent regulatory approach across the EU to provide clarity for retail and institutional investors. The firm stated that establishing uniform rules would protect investors while aligning Europe with markets such as the United States and Hong Kong, where regulations are clearer.

Mandy Chiu, Head of Financial Product Development at 21Shares, commented on the challenges investors face due to the existing regulatory framework. “The current regulations are a patchwork that creates confusion and prevents retail investors from accessing digital assets,” she said. Chiu added that clear rules from ESMA could offer investors new opportunities in a regulated environment, enhancing portfolio diversification while ensuring investor protection.

The firm further suggested that ESMA establish guidelines for indirect exposure to crypto assets through ETPs, which are traded similarly to securities. According to 21Shares, this would allow investors to access crypto in a safe, regulated manner. The company believes that a unified regulatory stance would encourage market stability and growth in the crypto space.

In May, ESMA launched a consultation to review eligible assets for UCITS funds, which closed in August. The regulator is currently considering the feedback received.

21Shares operates over 40 crypto ETPs listed on 11 exchanges, including a U.S.-based spot Bitcoin ETF operated jointly with ARK Invest, which holds $2.64 billion in assets under management.

Chiu reiterated the importance of regulatory clarity, stating, “By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment designed for investor protection.”

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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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