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German Institutional Funds Will Be Able to Invest Hundreds of Billions of Euros in Crypto Starting from Next Week

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Fri, 07/30/2021 - 06:14
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Alex Dovbnya
A new law that could potentially result in up to $415 billion flowing into cryptocurrency assets will come into effect on Aug. 2
German Institutional Funds Will Be Able to Invest Hundreds of Billions of Euros in Crypto Starting from Next Week
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German institutional funds (Spezialfonds) will be able to put up to a fifth of their portfolios into cryptocurrencies starting from next week, Bloomberg reports.

This will be possible because of the Fund Location Act that will come into effect on Aug. 2.

The new law is supposed to make Germany more attractive for investments on the global scale as it continues to fall behind such European countries as Luxemburg and Ireland because of existing barriers.

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Spezialfonds—which oversee an estimated 1.8 trillion euros worth of assets—are not available to the general public.

Up to $415 billion could potentially flow into crypto, but industry veteran Tim Kreutzmann believes that the German funds will be far more conservative:

Most funds will initially stay well below the 20% mark.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.