New German law allows investment of up to R$2 trillion in Bitcoin

Charlie Taylor

Today (01), a new law comes into effect in Germany, the “Fund Location Act”, which allows “Spezialfonds” (“special funds”) to invest up to 20% of their portfolios in cryptocurrencies. And why is this important? Spezialfonds are the dominant institutional investment vehicles in Germany, with more than 4,000 funds that could start investing in crypto. With this milestone, about 350 billion euros (more than 2 trillion reais) can, in theory, be invested in cryptocurrency projects like Bitcoin. This number was calculated based on the total assets under management of such German funds. Spezialfonds are attractive investment vehicles for institutional investors as they offer greater flexibility and a more robust regulatory framework (which give investors better guarantees), as well as fewer difficulties regarding diversification, liquidity, and restrictions on borrowing and leverage. This law was introduced in April of this year, and passed by parliament shortly thereafter. Such a sizable allocation in the crypto market could have profound implications across Europe, given that Germany has the largest economy in the Eurozone. Advances like this can inspire other countries to follow similar paths, towards the legitimacy of the cryptocurrency market as a whole. full use of cryptocurrencies. It is worth remembering that, since 2018, the government has already considered Bitcoin as a legal means of payment. In 2019, the country also demonstrated important advances in the issue of cryptocurrency regulation, specifically Bitcoin, when it authorized its banks to hold and sell BTC.

Germans are eyeing bitcoin

The positive legal movement of the largest economy in the European Union is already generating business. Deutsche Börse, Germany's B3 on June 30, acquired the Swiss-based brokerage Crypto Finance AG. With more than 765 companies and a capitalization of over 1.4 trillion euros, Deutsche Börse has established itself as the largest exchange from the country. “Crypto Finance perfectly complements our latest offerings such as 360X, the innovative DLT-based platform for creating serial markets, as well as cryptocurrency ETNs,” said Thomas Book, Director of Trading & Clearing at Deutsche Börse.Read also:

Click to rate this post!
[Total: 0 Average: 0]
Next Post

Bitcoin Stagnant at $33,000 this Friday – Market Summary

Bitcoin has yet to shake off the negative sentiment caused by China's FUD. The main cryptocurrency is stagnant at $33,000 this morning (02). Most altcoins are also unusually calm since yesterday. However, in recent weekends, we have seen strong volatility, which could return to the market in the next few […]

Subscribe US Now