Germany makes a move towards crypto adoption. The country enables funds aimed at institutional investors to put up to 20% of their capital in various digital assets. However, managers should adopt a cautious approach taking into account that the asset class is ultra-volatile.
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The option will be available from Monday for certain funds that follow fixed investment rules. Those are funds only accessible for large institutions. As stated by BVI, German Investment Funds Association, the law refers to funds that manage about $2.1 trillion.
Germany announced the plans in early July, and the option will become available from August 2.
As reported by Bloomberg, a specialist on crypto assets at BVI, Tim Kreutzmann finds that at the start most funds will invest less than the allowed 20% mark.Looking from another view, institutional investors like insurance companies follow strict regulatory rules for their investment framework, Kreutzmann added. These entities must also be interested in crypto investments. Despite current regulatory issues, the crypto market continues to develop with new investment options and funds appearing more often.