Around 4,000 institutional funds with almost 2 trillion euros of managed assets in Germany can now invest 20% of their portfolio in crypto currencies including Bitcoin.
- On July 1st, the eagerly awaited Fund Location Act came into force in Germany. The German Bundestag, the Bundestag, approved the law on April 22nd.
- Under this law, new and existing domestic special funds are allowed to invest up to 20% of their portfolio in crypto-assets such as Bitcoin.
- There are around 4,000 such special funds covered by this law. According to a report by BVI Investments, 1.88 trillion euros (2.23 trillion US dollars) were invested in open special funds without real estate special funds at the end of December 2020.
- If all special funds were to allocate the full 20% in cryptocurrency, this would correspond to more than 376 billion euros (446 billion US dollars).
- Specialty funds are traditionally open, regulated mutual funds limited to institutional investors such as financial institutions, insurance companies, corporations, foundations, and churches.
What do you think of this law that allows special institutional funds to invest in cryptocurrency? Let us know in the comment section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.