The EU is considering including cryptocurrencies in the 12 trillion euro investment market, and its impact may far exceed that of US ETFs

The European Securities and Markets Authority (ESMA) is consulting with the investment product advisory industry and experts on whether cryptocurrency assets should be included. This move could open up a broader market for cryptocurrencies, far exceeding the market size of spot Bitcoin ETFs. The plan aims to expand the scope of UCITS (EU Transferable Securities Collective Investment Scheme), with the UCITS market reaching as high as €12 trillion. If successful, this would be a key step in mainstreaming cryptocurrency assets in Europe.

The consultation deadline for ESMA is August 7th, and approval is still pending. DLA Piper lawyer Andrea Pantaleo stated that the impact of this move could be far greater than that of US ETFs, as many fund departments may allocate some liquidity to cryptocurrency assets.