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New German Law opens the gate for $415 billion crypto allocation

A new German law introduced and approved in April this year is coming into effect from today. Germany’s Fund Allocation law could potentially open the gates for $415 billion in crypto allocations by thousands of institutional funds in the country. The law allocation institutional funds to allocate 20% of their portfolio into crypto assets.

Germany has a total of 4,000 Spezialfonds or special funds with $1.8 trillion in combined assets under management. If these funds decide to allocate the whole 20% towards crypto under the new law, it would lead to nearly €350 billion or $415 billion in crypto inflow.

Germany is seen as the economically strongest member in the Eurozone and an allocation of such value could persuade other European nations to follow in their footsteps. Europe is already leading the crypto charge with its compliant regulatory policies and different countries are also working towards their CBDC. Recently France and Switzerland also carried out their first cross-border CBDC trials.

Germany is Leading the Crypto Charge in Europe

Germany is increasingly looking at a potential future in cryptocurrencies and expanding the country’s exposure to digital assets via favorable crypto regulations. BaFin, the country’s top regulatory watchdog recently issued the first crypto custody license to Coinbase. Deutsche Borse, the top exchange operator in the country has already announced plans to offer crypto custody to its wealthy clients by the end of this year, and recently it acquired majority stakes in digital asset manager Crypto Finance AG.

The crypto adoption by institutions as well as the government has seen a significant rise this bull season. Especially at a time when the crypto market has lost almost 50% of its valuation from the time, the institutions continue to show great faith in these digital assets.

The post New German Law opens the gate for $415 billion crypto allocation appeared first on Coingape.

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