The European Securities and Markets Authority (ESMA), the EU’s financial watchdog, is reviewing<\/a> whether to allow Bitcoin into the region’s \u20ac12 trillion mutual fund market.<\/p>\n JUST IN: \ud83c\uddea\ud83c\uddfa EU Securities Authority\u00a0is exploring adding #Bitcoin<\/a> and Crypto exposure to the \u20ac12T investment market.<\/p>\n EU is gearing up \ud83d\ude4c pic.twitter.com\/kVYZrrEFCx<\/a><\/p>\n \u2014 Bitcoin Magazine (@BitcoinMagazine) May 9, 2024<\/a><\/p>\n ESMA seeks feedback<\/a> on expanding eligible assets for Undertakings for Collective Investment in Transferable Securities (UCITS). These mainstream retail investment products comprise over 75% of funds held by EU citizens.<\/p>\n If Bitcoin is approved for UCITS, it would enable Europe’s first mainstream access, meaning that fund managers could allocate small portfolios to Bitcoin within the massive framework.<\/p>\n ESMA is gathering input until August 7 before making recommendations. The move follows Bitcoin ETF<\/a> approvals in the US and Hong Kong, which have signaled a warming global regulatory attitude globally.<\/p>\n Still, obstacles remain regarding Bitcoin custody under existing EU regulations. Rules like the upcoming Markets in Crypto-Assets (MiCA) legislation may require coordination on asset segregation.<\/p>\n Nonetheless, ESMA’s proactive approach recognizes Bitcoin’s growing relevance across Europe.\u00a0<\/p>\n