EU body mulls including digital currency ETFs in UCITS for retail investors [Video]

Undertakings for Collective Investment in Transferable Securities (UCITS) funds are hugely popular in the European Union (EU) due to their strong investor protections and their ability to be transferred across the EU. They make up 75% of the total investments made by EU retail investors.

For the first time since 2007, the European Securities and Markets Authority (ESMA) is reviewing which assets might be appropriate to include in UCITS. Of course, given all that has changed since then, digital currencies like BTC and ETH are up for consideration.

UCITS require assets to be liquid, so the ESMA is considering allowing indirect exposure via exchange traded funds (ETFs), among other things. In addition to liquidity, risk diversification and the ability to calculate net asset values are being considered.

The ESMA is currently gathering evidence regarding eligible assets for UCITS. This call for evidence closes on August 7.

EU leading in digital assets, but it’s tightly regulated

The consideration for digital currencies to be included in UCITS …