ESMA May Add Bitcoin to €12 Trillion UCITS, Eyeing $100 Billion Inflow

The European Securities and Markets Authority (ESMA) is currently evaluating the potential inclusion of Bitcoin and other digital assets into the UCITS (Undertakings for Collective Investment in Transferable Securities) funds, which represent a market worth approximately €12 trillion. This move could significantly impact the cryptocurrency market, as UCITS funds are about twice the size of the U.S. ETF market. Stakeholders are being consulted to assess the risks and benefits of such an inclusion, which could potentially attract substantial investment inflows into Bitcoin, potentially triggering an inflow of $100 billion. Historical data from the U.S. shows that $12 billion of net inflows into Bitcoin ETFs had a notable impact on Bitcoin's value.