New Cryptocurrency Law In Germany

The new cryptocurrency law in Germany. Institutional funds in Germany will be able to hold 20 percent of cryptocurrencies. Here are the details on the subject.

Germany has announced that certain institutional funds will be allowed to invest billions of dollars in crypto assets for the first time. A law that went into effect Monday in Germany will allow “Spezialfonds” with fixed investment rules to put 20 percent of their assets in Bitcoin and other crypto-assets. Funds accessible only to institutional investors, such as pension companies and insurance companies, currently amount to 1.8 trillion Euros. Regulators around the world have not been quick enough to accept cryptocurrencies, which are rapidly gaining traction lately and markets are dominated by a small number of investors. Tim Kreutzmann, a crypto-assets specialist at Germany's fund industry body BVI, said: "Most funds will initially remain below 20 percent. On the other hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. They should want to invest in cryptocurrencies." According to Kamil Kaczmarski, a financial services consultant at Oliver Wyman, a management consulting firm, the volatility of the assets may not be attractive to investors who have traditionally taken a conservative view.