Crypto exchange-traded product (ETP) giant 21Shares is announcing that it’s pushing European authorities for a more complete regulatory framework.

According to a new announcement from 21Shares, the firm is asking the European Securities and Markets Authority (ESMA) to set aside a regulatory framework for crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds.

21Shares says Europe currently suffers from legal inconsistency between member states, resulting in the allowance of certain UCITS to hold crypto while others have been barred.

The company also argues that a lack of consistency results in investor protection gaps. 21Shares recommends that EMSA establishes clear guidelines to apply across all EU entities.

According to the firm, this would put EU markets in line with Hong Kong and US markets, which have already approved several crypto exchange-traded funds (ETFs).

Says Mandy Chiu, Head of Financial Product Development at 21Shares,

“The current patchwork of regulations is creating confusion and preventing retail investors from accessing the full potential of crypto assets. By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment that is 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 it’s time to move forward and provide a framework that aligns with Europe’s tradition of supporting innovation and competitive markets.”

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Coinbase is serving as a custodian for eight of the nine newly approved Ethereum (ETH) exchange-traded funds (ETFs), according to Brian Armstrong, the exchange’s chief executive.

Nine Ethereum ETFs kicked off trading in the US on Tuesday, including products from BlackRock, Fidelity, 21Shares, Invesco, Franklin Templeton, VanEck, and Bitwise, as well as two different funds from Grayscale.

Of those newly approved ETFs, only Fidelity isn’t tapping Coinbase as a custodian, with the firm choosing to use itself instead, according to a graphic shared by James Seyffart, an ETF research analyst at Bloomberg Intelligence.

VanEck names Gemini as a primary custodian for its ETF but says in its filing with the Securities and Exchange Commission (SEC) that it will utilize Coinbase Custody as an “additional custodian.”

Armstrong says the launches are a “huge step forward for regulatory clarity.”

“ETH is not a security! We’ve been saying it for years and today the SEC finally made it official.”

Seyffart noted on Tuesday evening that Ethereum ETFs witnessed approximately $165 million worth of outflows on their first day, primarily due to $484.1 million leaving Grayscale’s ETF product, which converted from the preexisting Grayscale Ethereum Trust.

The ETF analyst’s numbers do not include the totals from BlackRock and Invesco, however.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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