21Shares calls for unified EU rules on crypto investment products
21Shares, a crypto exchange-traded product (ETP) issuer, has urged the European Union to adopt consistent regulations for crypto assets across member states.
The company raised concerns over the current fragmented rules, calling for the European Securities and Markets Authority (ESMA) to establish a unified framework for crypto investments in retail-focused funds such as ETPs and exchange-traded funds (ETFs).
On October 7, 21Shares released a statement emphasising that the inconsistent regulatory landscape across Europe has led to confusion for investors.
The company noted that while some countries, like Germany and Malta, permit UCITS (Undertakings for Collective Investment in Transferable Securities) funds to hold crypto assets, others, such as Luxembourg and Ireland, do not.
This disparity creates challenges for both retail and institutional investors seeking to diversify their portfolios through digital assets.
Mandy Chiu, head of financial product development at 21Shares, described the current regulatory framework as a “patchwork” that limits investor access to crypto assets.
She advocated for a clear and consistent set of rules across the EU, 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 that is designed for investor protection."
21Shares further recommended that ESMA establish guidelines allowing for indirect exposure to crypto through ETPs, which function like traditional securities.
The call for regulatory clarity aligns with broader efforts in the global financial market, including the United States and Hong Kong, where frameworks for crypto investment products are being refined.
The European regulator, ESMA, launched a consultation on UCITS eligible assets earlier this year, which closed in August.
It is currently reviewing feedback to develop potential regulatory changes.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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