21Shares calls for EU regulators to unify cryptocurrency ETF rules to address regional legal divisions

According to Cryptoslate, based on a statement on October 7th, cryptocurrency investment company 21Shares has called on the European Securities and Markets Authority (ESMA) to establish standardized regulatory rules for the inclusion of cryptocurrencies in the UCITS fund. The company pointed out that the current approach lacks consistency, causing confusion among retail and institutional investors across Europe. For example, Germany and Malta allow UCITS funds to include cryptocurrencies, while Luxembourg and Ireland do not. Mandy Chiu, Head of Financial Product Development at 21Shares, explained that this fragmented approach limits the ability of individual investors to fully utilize cryptocurrencies. She added, "By providing a consistent set of rules across Europe, ESMA can open up new avenues for investors to diversify and add value to their investment portfolios in a regulated and investor friendly environment Chiu also pointed out that clear and consistent rules will help stabilize the market and promote the growth of the cryptocurrency industry. Therefore, 21Shares urges ESMA to develop comprehensive guidelines that allow all EU member states to indirectly invest in cryptocurrencies. According to 21Shares, this will protect investors and broaden the channels for cryptocurrency investment. It is worth noting that 21Shares' call for clear regulation comes at a time when ESMA is reviewing its recent advisory feedback on including new asset classes, including cryptocurrencies, in UCITS funds.