Proposed Legislation in Germany Could Allow $425B to Flow Into Crypto
This could be big for Germans – and crypto
Proposed Legislation in Germany Could Allow $425B to Flow Into Crypto: Report
- The report cites analysis by Sven Hildebrandt, CEO of Distributed Ledger Consulting (DLC).
- The bill, which was approved by Germany’s parliament last week, is expected to take effect on July 1 if it is approved by the upper house, the Bundesrat.
- Under the legislation, wealth and institutional investment fund managers, known as Spezialfonds (special funds), will be able to invest up to 20% of their portfolio in crypto.
- If they all did so to the 20% limit, nearly $425 billion would move from other assets into crypto, based on the total assets under management (AUM) of such funds in Germany.
- The legislation could prove a significant development for wider acceptance of crypto institutional investment across Europe, given Germany’s status as the eurozone’s most powerful economy.