While the SEC's decision on spot Ethereum ETF applications in May was eagerly awaited in the cryptocurrency market, an important move came from the European Union.
According to DLNews, the European Union Securities and Markets Authority (ESMA) asked for opinions from industry leaders and experts on whether cryptocurrencies should be included in investment products.
At this point, ESMA is investigating whether cryptocurrencies should be included in the “Collective Investment Funds in Transferable Securities, i.e. UCITS”.
Evaluating this move, experts stated that it is a move that could enable cryptocurrencies to access a larger market than spot Bitcoin ETFs and said, “This move opens the door to wider access to cryptocurrencies through UCITS, a market of 12 trillion Euros.” said.
Financial regulation expert Sean Tuffy said in a statement: “If ESMA is convinced that cryptocurrencies should be included in investment products, this will be the final step in popularizing cryptocurrencies in Europe. After this move, more people will turn to cryptocurrencies and everything will change.” said.
Tuffy also pointed out that US and Hong Kong regulators approved spot Bitcoin ETFs this year, and many new investors subsequently came to the cryptocurrency sector.
Finally, experts added that the impact of ESMA's inclusion of cryptocurrencies within UCITS will be more important than that of US spot ETFs.
*This is not investment advice.