21Shares AG is advocating for the European Securities and Markets Authority to standardize regulations for crypto assets in UCITS funds, aiming to simplify the landscape for both retail and institutional investors. This push for a consistent regulatory framework across EU member states seeks to remedy the current disparities that obscure investment choices and potentially compromise investor protection.

The company stresses that establishing clear guidelines for crypto exposure would match the levels of investor safety seen in other major markets, like the US and Hong Kong, which have already integrated Bitcoin and Ethereum ETFs. Mandy Chiu of 21Shares emphasizes the need for a unified approach to bolster Europe’s position in financial innovation and ensure robust market stability and growth.

By aligning crypto asset regulations, Europe can enhance portfolio diversification opportunities in a regulated setting, promoting transparency and reducing risks associated with non-regulated venues. The swift adoption of such measures is crucial to maintaining competitiveness on the global stage and meeting investor demands for accessible, secure crypto investments.

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