According to PANews, the European Securities and Markets Authority (ESMA) is consulting with industry professionals and experts on whether cryptocurrencies should be included in investment products. This move could potentially open up a broader market for cryptocurrencies, far exceeding the market size of Bitcoin ETFs.
The plan aims to expand the scope of UCITS (Undertakings for the Collective Investment in Transferable Securities), a market with a size of up to 12 trillion euros. If successful, this would be a crucial step towards the mainstreaming of cryptocurrencies in Europe. Financial regulation expert Sean Tuffy referred to it as having the potential to be a 'game changer'.
The consultation deadline set by ESMA is August 7th, with approval still under observation. Andrea Pantaleo, a lawyer at DLA Piper, stated that the impact of this move would far exceed that of US ETFs, as many fund departments may direct some liquidity towards cryptocurrencies.