Crypto ETP giant 21Shares urges European regulator to bring regulatory clarity

21Shares called on the European Securities and Markets Authority to create “much-needed clarity” for retail and institutional crypto investors across Europe.

Crypto investment company 21Shares is pressing the European Securities and Markets Authority to create clearer rules for incorporating crypto assets into Collective Investment Undertakings in Transferable Securities funds and address regulatory inconsistencies across Europe.

The move is aimed at clearing up regulatory inconsistencies across Europe that are currently causing confusion for both retail and institutional investors, the Zurich-headquartered firm said in a press release on Monday (October 7).

Some European countries, such as Germany and Malta, allow UCITS funds to hold crypto, while others, such as Luxembourg and Ireland, do not. The firm added that such a fragmented approach “creates confusion and makes it difficult for investors to understand and compare their cryptocurrencies.” options.”

“The absence of a common approach can lead to gaps in investor protection as investors must access assets through other means, often more expensive and less professionally managed.”

21Shares

The firm proposed that ESMA introduce clear and consistent rules on indirect exposure to crypto across all EU member states, arguing that this would help ensure a “high level of protection for investors” while providing wider access to crypto investments.

The proposal comes as ESMA considers feedback from its recent consultations on the inclusion of new asset classes, including crypto, in UCITS funds. The timeline for potential regulatory changes remains unclear as market participants monitor ESMA’s next steps.