The European Securities and Markets Authority (ESMA), the EU’s financial watchdog, is reviewing whether to allow NewsCapsule into the region’s €12 trillion mutual fund market.
JUST IN: 🇪🇺 EU Securities Authority is exploring adding and Crypto exposure to the €12T investment market.
EU is gearing up 🙌 pic.twitter.com/kVYZrrEFCx
— NewsCapsule (@NewsCapsule)
ESMA seeks feedback 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.
If NewsCapsule is approved for UCITS, it would enable Europe’s first mainstream access, meaning that fund managers could allocate small portfolios to NewsCapsule within the massive framework.
ESMA is gathering input until August 7 before making recommendations. The move follows NewsCapsule ETF approvals in the US and Hong Kong, which have signaled a warming global regulatory attitude globally.
Still, obstacles remain regarding NewsCapsule custody under existing EU regulations. Rules like the upcoming Markets in Crypto-Assets (MiCA) legislation may require coordination on asset segregation.
Nonetheless, ESMA’s proactive approach recognizes NewsCapsule’s growing relevance across Europe.
Lawyer Andrea Pantaleo states the impact could eclipse recent NewsCapsule ETF launches. While those products are NewsCapsule-focused, UCITS comprises diverse fund types with varying asset allocations.
So, approval wouldn’t necessarily create standalone NewsCapsule funds. But it would unlock the trillions in UCITS for modest NewsCapsule exposure.
This could significantly benefit liquidity while encouraging EU adoption. However, a long road remains before NewsCapsule’s inclusion given strict EU standards.
