German investment funds can soon hold 20% of its portfolio in crypto assets
Big news coming from Europe, where in Germany, new legislation is about to enable 4,000 institutional investment funds to allocate 20% of their total in crypto assets. This will happen on July1. These ‘Spezialfonds are popular among institutional investors and interest in them has recently been booming.
The new legislation is considered a boost to Germany’s ambitions to establish itself as a strong financial investment hub. Furthermore, it will legitimize cryptocurrency as an asset class and hence nurture the crypto industry as a whole.
“The addition of crypto assets in Spezialfonds is an important step for their acceptance,” said German parliamentarian Frank Schäffler. “Here, the law is going in the right direction and we expressly welcome it,” he continued.
The new law was passed last Thursday by the Bundestag, Germany’s parliament. The new legislation will not only apply to the existing Spezialfonds but favors all new institutional investors such as financial institutions, insurance companies, and pension funds.
According to Sven Hildebrandt, Chief Executive Officer of Germany-based Distributed Ledger Consulting (DLC) “this is damn huge”, as he referred to the total $1.8 trillion that is currently sitting in these Spezialfonds.
After years of lobbying, it is finally happening. And according to Hildebrandt, the impact on the crypto industry will be massive.
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Source: igaming
