Spain’s market has announced that it will allow the investment firms to trade crypto but with certain caveats. This news has comes from Spain’s market regulator. A new set of guidelines has been published by National Securities Market Commission, shortly known as CNMV. They have allowed a number of different crypto investment modes. These include investment fund operators, collective investment institutions, capital investment programs.

The first condition has been kept that the funds will be offered only for crypto-based products in cases where the sales and purchase operations by third parties determine the market prices.

The second condition is regarding fund managers. It will be compulsory for fund managers to warn their clients about the potential risks associated with the crypto market. They should aware of their clients of the speculative and volatile market nature of cryptocurrency.

Still refraining from crypto

Finally, fund operators and institutional investors will refrain from investing in certain crypto derivatives and securities highlighted by crypto assets. This includes Exchange Traded Commodities (ETCs) and Exchange Traded Notes (ETNs).

Although no Spanish funds have started to invest in crypto the experts are expecting a positive activity after crypto has been allowed and are regarding it a catalyst for crypto investment. Many said it will help Spanish managers to follow the lead of American firms.

Volatile crypto’s

The news came very unexpectedly as earlier, CNMV clearly stated the unexpected volatile market behavior of the cryptocurrency. Central Bank of Spain and CNMV both warned the customers regarding the volatile market nature in prices. They regarded crypto as an unregulated sector.

Spanish investors may prefer to invest in traditional assets and stocks rather than making direct BTC purchases. This was expressed by an economics professor at Universidad San Pablo in Madrid.