Approximately 415 billion USD worth of investments could flow into crypto currencies as per new laws governing German Spezialfonds go into effect.
From August German institutional funds will be able to hold up to 20% of their assets in crypto currencies, possibly setting the stage for wider mainstream acceptance of Bitcoin and other crypto assets by the nation’s pension funds.
Spezialfonds currently manage about $2.1 trillion, or 1.8 trillion euros, worth of assets. The new law changes fixed investment rules governing Spezialfonds, also known as special funds, which are only accessible to institutional investors such as pension funds and insurers.
Tim Kreutzmann who works for German investment fund association BVI said that most funds will likely stay well below the 20% mark initially and the new rule passed in early July represents significant development in how German lawmakers manage digital assets. However Germany’s Federal Financial Supervisory Authority, better known as BaFin, continues to urge caution with respect to digital-asset investing.
