Germany allows institutional funds to invest in cryptocurrency! Musk’s blessing, bitcoin broke through $40000

For the first time, Germany will allow some institutional level funds to invest heavily in cryptocurrency assets. So called “spezialfonds,” which have fixed investment rules, can invest up to 20 per cent of their assets in bitcoin and other cryptocurrency assets, according to a law that will take effect next Monday (August 2). These funds currently manage about 1.8 trillion euros (US $2.1 trillion) of assets, which means they can invest up to 360 billion euros in cryptocurrency markets. However, Tim kreutzmann, a crypto asset expert at BVI, a German fund industry institution, said: “most funds will initially remain at a level far below 20%. On the one hand, institutional investors such as insurance companies have strict regulatory requirements on their investment strategies. On the other hand, they may not want to invest in cryptocurrencies. ” Kaczmarski believes that the volatility of cryptocurrencies may make them less attractive to such investors in Germany, who are traditionally very conservative. He expects these funds to test cryptocurrencies at a low level, with most of them not close to the 20% ceiling for at least five years. DWS, the asset management arm of Deutsche Bank, said it was closely following the developments but did not intend to provide any funds to buy cryptocurrencies at this time. Deka bank, one of Germany’s largest asset managers, said it had been considering investing in digital currencies but had yet to make a decision.

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