A new 5 billion German ‘crypto law’ takes effect today
A new German ‘crypto law, Germany’s Fund Location Act that was introduced in April and approved by parliament shortly thereafter, comes into effect today.
The new law allows German ‘Spezialfonds’, or special funds to allocate as much as 20% of their portfolios in cryptocurrency.
Based on the total assets under management of all Spezialfonds in Germany, a full 20% allocation would come down to a total of $415 billion. This according to Sven Hildebrandt, CEO of Distributed Ledger Consulting, and cited in a report by financial newspaper Boersen Zeitung in April. Hildebrandt had said:
“This is damn huge”
Spezialfonds are the largest institutional investment vehicle in Germany. Should this this market decide to allocate the permitted quota toward crypto, this is considered to have profound implications across Europe given Germany’s status as a European economic stronghold.
To put the 20% or $415 billion, that could possibly be allocated in Germany, in perspective take note that according to CoinMarketCap data, the entire crypto market is currently valued at $1.37 trillion. Bitcoin accounts for $620 billion.
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Source: igaming
