21Shares demands clearer regulation in Europe

21Shares, a well-known issuer of crypto ETPs, rebels against the inconsistency of cryptocurrency regulation in Europe and calls for regulatory clarity. 

21Shares of crypto ETP raises its voice and calls for clear regulation in Europe

According to what reported, it seems that 21Shares, one of the largest issuers of crypto exchange-traded products (ETPs) in the world, has decided to raise its voice.

In practice, 21Shares is urging the European Securities and Markets Authority (ESMA) to create clear regulation for crypto. Specifically, the ESMA should include cryptocurrencies in UCITS funds (Undertakings for Collective Investment in Transferable Securities).

The purpose of the crypto ETP issuer is precisely to unlock cryptocurrency opportunities for European investors. 

In fact, 21Shares points out that there is still a lot of inconsistency on the issue throughout Europe. Just consider that in Germany and Malta, there are UCITS that hold cryptocurrencies, while in Luxembourg and Ireland, this is not the case. 

These are real discrepancies that create confusion, making it difficult to understand and compare the actions of investors. 

At this point, 21Shares requests the ESMA to establish clear and common guidelines for all member countries on indirect exposure to crypto. 

21Shares of crypto ETP: it is time for clear and common regulation for all EU countries

21Share can only take the issue personally, given that the confusion about European regulation also affects indirect investments in cryptocurrencies, such as its crypto ETPs. 

In fact, by including crypto assets through regulated ETPs, UCITS funds could provide a cost-effective and efficient way to gain exposure to these assets.

In this regard, Mandy Chiu, head of financial product development at 21Shares, commented:

“The current mosaic of regulations creates confusion and prevents retail investors from accessing the full potential of crypto assets. By providing a consistent set of rules across Europe, ESMA could open new avenues for investors to diversify and enhance their portfolios in a regulated environment designed for investor protection. At 21Shares, we focus on making crypto products easier, safer, and more conventional to trade, meeting the growing demand from investors who want to include these assets in their strategies. With a unified regulatory stance, Europe can position itself at the forefront of financial innovation. Clear guidance from ESMA would not only promote market stability and investor protection but also encourage further growth and development in the crypto asset space. We believe that the time has come to move forward and provide a framework that aligns with the European tradition of supporting innovation and market competitiveness.”

2024 of the crypto products company based in Zurich

21Shares has been involved in the crypto world for a long time. The first crypto ETP of the Zurich-based company was launched in 2018. 

Looking at this 2024, 21Shares seems to always ride the wave and launch new financial products based on cryptocurrencies. 

In fact, last month 21Shares launched its 21BTC with the aim of revolutionizing the market of Bitcoin tokenized on Ethereum. Its goal is to offer greater security and transparency to the already existing solutions, such as Wrapped Bitcoin (WBTC).

Not only that, going further back in time, in July 2024, 21Shares wanted to submit its request to the Securities and Exchange Commission of the USA to issue its ETF on Solana spot.

Last May 2024, then, the leading company of crypto ETPs, had also announced the launch of four of its 100% collateralized exchange traded notes (ETN) on the London Stock Exchange (LSE). These ETNs not only represent the official entry of 21Shares into the United Kingdom but are intended exclusively for professional investors.