August 3, 2021
Germany is planning to allow certain institutional funds to invest billions of dollars in crypto assets for the first time, according to a report by Bloomberg.
Starting from August 2, 2021, German institutional funds will be able to hold up to 20% of their assets in cryptocurrencies. The new law alters fixed investment rules governing Spezialfonds and the funds can only be accessed by institutional investors, such as pension companies and insurers. They currently manage about 1.8 trillion euros ($2.1 trillion).
Crypto assets expert at Germany’s fund industry body BVI Tim Kreutzmann believes that most funds will stay well below 20%. “On the one hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other hand, they must also want to invest in crypto.”