German funds, which generate $2.2 trillion, may now invest 20% in bitcoin
Germany’s ‘Fund Locations Act’ entered into force today, which means that thousands of institutional investment funds will now be eligible to invest in Bitcoin and other cryptoactives for the first time.
Spezialfond is a preferred investment vehicle for institutional investors and the new law allows fund managers to allocate up to 20% of a Spezialfond to crypto-assets. Interest is exploding, according to market experts, who anticipate that these new regulations could trigger significant investments in the crypto market.
Sven Hildebrandt, head of Hamburg-based blockchain consultancy DLC Distributed Ledger Consulting, told that he projects a theoretical flow on the order of €350 billion ($415 billion) in cryptoactives. That’s a significant and “huge” amount, according to Hildebrandt, considering that Bitcoin’s current market capitalization is $632 billion.
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Their calculations are based on estimates that around €1.87 trillion ($2.2 trillion) is tied to approximately 4,000 of these funds.
“It’s not going to happen overnight, but we’re talking about the biggest investment vehicle we have in Germany – literally all the money is there,” Hildebrandt said.