One of Germany's largest asset managers is considering investing in Bitcoin. The news comes on the eve of a new law in Germany that will allow Spezialfonds to invest up to 20% of its assets in cryptocurrencies.
A new law allowing Spezialfonds to invest in cryptocurrencies takes effect on August 2. German investors could provide yet another frontier for institutional investors to invest in Bitcoins and altcoins, continuing the recent trend with more and more institutions looking for opportunities in the sector.
The Fund Location Act will allow institutional investors in Germany to invest up to a fifth of their managed fortune in Bitcoin, Ethereum, and other cryptocurrencies. Special funds reportedly account for about €1.8 trillion (roughly $2.1 trillion) of institutional wealth. If the funds allocate the 20% allowed by the new law, more than $400 billion is likely to end up in various crypto projects.
While most funds are likely to remain well below 20% at first due to various factors, this will change over time. For example, Dekabank, one of Germany's largest asset managers, is considering investing in Bitcoin, a spokesman said, but a final decision has yet to be made. Dekabank currently owns $403 billion in assets. Cryptocurrencies represent a wide field for investment.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
