German funds for institutional clients will be able to invest up to 20% of their assets in cryptos as of July 1. This will be possible following the entry into force of a new regulation, Decrypt reports.
The Bundestag passed the relevant bill on April 22. It will come into force once it has been approved by the Federal Council of Germany. The regulation will apply to closed-end investment funds for institutional clients (Spezialfonds) with a minimum volume of 10 million euros, insurance companies and pension funds. Sven Hildebrandt, CEO of Distributed Ledger Consulting, said:
"This is damn huge. Around €1.2 trillion ($1.8 trillion) is invested into Spezialfonds. This won't happen overnight, but we are talking about the largest investment vehicle that we have in Germany."
According to the calculations of Hildebrandt, one of the drivers of the law, Spezialfonds could invest up to €350 billion ($422 billion) in cryptos.
In March last year, the Federal Financial Supervisory Authority (BaFin) classified digital assets as financial instruments.