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New German Bills Might Allow $425 Bln Investment Into Crypto Market.

A new German law could theoretically bring as much as $425 Bln of institutional investment into the cryptocurrency market, financial newspaper Boersen Zeitung revealed.

The report cites an analysis by Sven Hildebrandt, CEO of DLC [Distributed Ledger Consulting]. The bill, that was approved by Germany’s parliament last week, is predicted to require effect on 1st July if it’s approved by the upper house, the Bundesrat.

Beneath the legislation, wealth and institutional investment fund managers, referred to as Spezialfonds [special funds], are going to be able to invest up to 20% of their portfolio in crypto.

If all of them did so to the 20% limit, nearly $425 Bln would move from other assets into crypto, supporting the entire assets under AUM management of such funds in Germany.

The legislation could prove a big development for wider adoption of cryptocurrency institutional investment across Europe, given Germany’s status as the eurozone’s most powerful economy.

There are other signs of such acceptance of cryptocurrency emanating from Germany in recent months, with Deutsche Bank announcing its intention to offer custody and brokerage services to its institutional clients earlier in December.

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