coinquora.com
- Germany enables institutional investors to hold crypto.
- This move could lead to accepting Bitcoin and altcoins within the country’s pension funds.
- The country will see further enhancements in the crypto and blockchain sectors in the future.
The latest German law governing German Spezialfonds goes into effect from August 2, 2021, onwards. This initiative could bring a huge influx of about $415 billion worth of investments via cryptocurrencies.
In detail, this law will enable German institutional funds to hold up to about 20% of their assets in terms of cryptocurrencies. This move, in turn, could lead to a possible open stage for mainstream Bitcoin (BTC) adoption in the country.
Specifically, the law changes the preceding investment rules surrounding Specialfonds (Special funds). Moreover, this law is accessible to institutional investors such as insurers and pension funds. At the moment, Specialfonds manages around $2.1 trillion (1.8 trillion euros) in assets.
In particular, this law was passed last month and will go into effect soon. This is indeed a huge move by the German authority as opening crypto investments could lead to popular cryptos like Bitcoin and other altcoins such as Ethereum or Cardano being accepted by the country’s pension funds.
Meanwhile, Germany’s Federal Financial Supervisory Authority — BaFin, urges caution when it comes to investing in digital assets. However, it is also simultaneously encouraging the country to embrace blockchain technology.
In fact, Germany launched a blockchain initiative back in 2019. The strategy successfully led to crypto adoption throughout 2020. To be more specific, the initiative went on to promote 44 adoption measures that should yield to fruition by the end of this year.
All in all, this new approach will introduce measures that will make it easy for all investors who wish to access digital investments. Above all, the country has taken some big steps to establish itself as a leading market for crypto exchange-trading products (ETPs).