21Shares Urges ESMA to Establish Clear Guidelines for Crypto in UCITS Funds Across Europe

21Shares Urges ESMA to Establish Clear Guidelines for Crypto in UCITS Funds Across Europe

Zurich-based crypto investment firm 21Shares has called on the European Securities and Markets Authority (ESMA) to provide much-needed clarity for both retail and institutional crypto investors across Europe.

In a press release issued on Monday, October 7, 21Shares highlighted the need for clearer guidelines regarding the inclusion of crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds, in an effort to address the regulatory inconsistencies that currently exist throughout the region.

According to the firm, while countries like Germany and Malta allow UCITS funds to hold crypto assets, others, such as Luxembourg and Ireland, do not. This fragmented approach creates confusion for investors, making it challenging for them to understand and compare their options.

“The lack of a unified approach can result in gaps in investor protection,” said 21Shares, noting that investors are often forced to gain exposure to crypto through less professional and more expensive channels.

To resolve this, 21Shares is urging ESMA to introduce standardized, consistent guidelines for indirect exposure to crypto assets across all EU member states. The firm argues that such measures would help ensure a higher level of investor protection while making it easier for a broader audience to access crypto investments.

The proposal comes as ESMA reviews feedback from its recent consultation on the inclusion of new asset classes, including crypto, in UCITS funds. While stakeholders eagerly await the regulator’s next steps, the timeline for any potential policy changes remains uncertain.