Here is a creative re-expression of the article, with the general semantics unchanged, and no grammatical errors:
The European Union’s financial watchdog, the European Securities and Markets Authority (ESMA), has sought the expertise of industry professionals on the prospect of incorporating cryptocurrencies into the 12 trillion euro ($12.8 trillion) investment product market.
ESMA has requested feedback from industry experts on whether Undertakings for Collective Investment in Transferable Securities (UCITS) – a 12 trillion euro investment product market – should be granted exposure to various asset classes, including structured/leveraged loans, catastrophe bonds, emission allowances, commodities, crypto assets, and unlisted equities.
UCITS is a class of investment funds designed to safeguard and simplify investment transactions. These funds often comprise mutual, exchange-traded, or money market funds, and are governed by EU regulations, though non-EU investors can also gain exposure.
Stakeholders in the UCITS ecosystem have until August 7th to submit their comments. If approved, UCITS would become one of the largest mainstream funds to integrate cryptocurrency exposure.
The EU watchdog’s move to consider adding crypto assets as an eligible asset class for a security investment fund comes amid the approval of Bitcoin (BTC) exchange-traded funds (ETFs) in the United States and Hong Kong, as financial regulators worldwide become more receptive to incorporating crypto into traditional investment vehicles.
While BTC ETFs are solely focused on cryptocurrencies, UCITS investments are divided into numerous fund types, each with a specific asset allocation based on the fund’s risk profile. This means that even if approved, there would not be an independent UCITS fund with a 100% crypto allocation, but rather multiple UCITS funds with a certain percentage of crypto exposure.
Currently, EU regulations prohibit independent crypto-centric investment products, forcing investors to access them through exchange-traded notes (ETNs).
Europe is known for its stringent crypto regulatory framework, being one of the first regions to introduce a comprehensive crypto regulatory regime in the form of the Markets in Crypto-Assets (MiCA) regulation. ESMA’s feedback request includes inquiries about how the addition of specific cryptocurrencies to the UCITS framework would or would not be affected by MiCA.