Spain’s Comisión Nacional del Mercado de Valores (CNMV) or National Securities Market Commission, recently stated that investment funds could interact with Bitcoin.

The statement was within a Q&A document for fintech companies, with one of the questions asking if a fund registered by CNMV could directly invest in cryptocurrencies. The answer by the CNMV was:

“This type of funds would have a legal place in Law 22/2014, which regulates, in addition to venture capital entities, other collective investment entities of closed type and their management entities.”

Law 22/2014 funds for Spain fall into three categories: closed-end collective investment entities (EICC), closed-end investment funds (FICC), and closed-end investment companies (SICC).

All three funds must have their own conditions and requirements in order for a fund to be classified as such and, therefore, to be able to invest in cryptocurrency. And while the CMNV has made it legally possible for funds to delve into digital currencies, the possibility is only on paper. Separate issues regarding regulations and valuation of volatile assets like Bitcoin and Ethereum still exist. CMNV later states:

“The investment of FICC and SICC in cryptocurrencies raises a series of practical problems on how to comply with the regulations regarding the valuation of assets, the management of liquidity and the custody guarantee.”

The last condition eager funds should know is that this possibility may not be permanent. CMNV is only issuing this ruling until there is a European or international standard. So even if a fund satisfies all the right conditions, all of its hard work may be for naught at a moment’s notice.

Regardless, this is a massive step forward for cryptocurrencies being seen as legitimate assets in institutional trading.

Most regulated funds handling cryptocurrency do it indirectly, either through a price index, derivatives, or other market products. Few hold actual Bitcoin, Ethereum, or any other digital currency.

And while having regulated funds hold something reminiscent of a cryptocurrency, the positive implications for cryptocurrencies market and brand image are more pronounced when they’re holding the real thing.


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