EU Considers Bitcoin Access in €12T Mutual Fund Market

The European Securities and Markets Authority (ESMA) is exploring the inclusion of Bitcoin in its €12 trillion mutual fund market, potentially granting mainstream access through UCITS products.
EU Considers Bitcoin Access in €12T Mutual Fund Market
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Key Takeaways

  • The ESMA is considering including Bitcoin in UCITS products.
  • UCITS manage over 75% of the EU’s mutual fund market, valued at €12 trillion.
  • Input on expanding UCITS assets will be collected until August 7.

The European Securities and Markets Authority (ESMA) is considering the introduction of Bitcoin into the EU’s €12 trillion mutual fund market.

This could open up opportunities for broader Bitcoin investments via Undertakings for Collective Investment in Transferable Securities (UCITS), which currently hold over 75% of EU citizens’ funds.

Input sought before decision

ESMA is seeking input until August 7 before issuing recommendations.

The decision would potentially allow European fund managers to allocate portions of their portfolios to Bitcoin.

This move aligns with the recent regulatory approvals of Bitcoin ETFs in the U.S. and Hong Kong.

Bitcoin’s impact on mainstream funds

Andrea Pantaleo, a lawyer, suggested that including Bitcoin in UCITS could have a significant impact, possibly exceeding that of Bitcoin-focused ETFs.

While it would not create dedicated Bitcoin funds, it would unlock access to UCITS for modest exposure.

However, compliance with EU standards remains a significant challenge.

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