A new Fund Location Act (Fondsstandortgesetz) will be put into effect in Germany, which allows both the 4,000 existing and new special funds (spezialfonds) to invest up to 20% of their assets into Bitcoin and Ethereum.
This move is done in hopes of elevating Germany’s position as a crypto-assets domicile and developing the crypto-assets industry in Germany.
There is no mandate on how much they should invest, with the maximum percentage allowed being 20%. Considering that this law is an implementation of a European Union directive, this could arrive in all areas across Europe in the future.
In the past, the special funds were not allowed to allocate any percentage to crypto-assets. However, an estimation of €1.87 trillion under their control can be diversified into Bitcoin now.
This won’t happen overnight, but we are talking about the largest investment vehicle that we have in Germany – literally all the money is in there.
Sven Hildebrandt, CEO of Distributed Ledger Consulting
Previously, Coinbase announced that it has received a cryptocurrency license by the German Federal Financial Supervisory Authority.