4,000 institutional funds in Germany can now invest 20% of portfolios in crypto assets – Bitcoin News regulations

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Around 4,000 institutional funds with nearly € 2,000 billion in assets under management in Germany can now invest 20% of their portfolios in cryptocurrency, including bitcoin.

The long-awaited Fund Location Act (Fondsstandortgesetz) entered into force on July 1 in Germany. Germany’s federal parliament, the Bundestag, authorized the legislation on April 22. Under this law, new and existing national special funds (Spezialfonds) are allowed to invest up to 20% of their portfolios in crypto assets, such as bitcoin. There are approximately 4,000 such special funds covered by this law. According to a report by BVI Investments, 1.88 trillion euros ($ 2.23 trillion) was invested in open-ended special funds, excluding special real estate funds, at the end of December 2020. If all funds Specialists were to allocate the full 20% in cryptocurrency, this would equate to more than 376 billion euros ($ 446 billion). Traditionally, special funds are regulated, open-ended investment funds limited to institutional investors, such as financial institutions, insurance companies, corporations, foundations and churches.

What do you think of this law allowing special institutional funds to invest in cryptocurrency? Let us know in the comments section below.

Tags in this story Bitcoin, crypto assets, Cryptocurrencies, Cryptocurrency, German funds, German laws, Germany, Hedge funds, institutional funds, institutional investors, special funds

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