21Shares Urges European Regulators to Establish Clear Crypto Asset Guidelines for UCITS Funds

21Shares, a leading player in the crypto exchange-traded products (ETPs) market, is calling on European regulators to step up. They want a clearer regulatory framework for crypto assets.

In a recent announcement, 21Shares reached out to the European Securities and Markets Authority (ESMA). They’re asking ESMA to create specific rules for crypto assets within UCITS funds.

Right now, Europe faces a confusing legal landscape. Some member states allow certain UCITS to invest in crypto, while others do not. This inconsistency can leave investors unprotected. 21Shares believes that clear guidelines from ESMA would help create a level playing field across the EU.

The firm argues that this move would align European markets with those in Hong Kong and the U.S., where several crypto exchange-traded funds (ETFs) have already been approved.

Mandy Chiu, Head of Financial Product Development at 21Shares, pointed out, “The current patchwork of regulations is creating confusion. It’s preventing retail investors from accessing the full potential of crypto assets.” She added, “By providing consistent rules across Europe, ESMA could open new avenues for investors to diversify and enhance their portfolios in a safe and regulated environment.”

Chiu emphasized the importance of a unified regulatory approach. “With clear guidance from ESMA, Europe can lead in financial innovation. This would promote market stability and investor protection while encouraging growth in the crypto space.”

In short, 21Shares believes it’s time for Europe to move forward and establish a framework that supports innovation and competitive markets.