On July 1, a law came into effect in Germany, giving the right to investment funds to invest in products focused on the cryptosphere. In theory, more than € 400 billion could be channeled into digital assets.
The law allows institutions to channel up to 20% of their capital into innovative instruments. At the moment, the funds control assets of € 1.3 trillion.
The entry into force of the law giving such investors the right to enter the crypto sphere is the first and important stage on the path of institutional adoption of the market, said Sven Hildebrandt, CEO of Distributed Ledger Consulting.
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He also recalled that the funds have been accumulated in the so-called special funds. They usually manage assets worth tens of millions of euros. There are now about 4000 such funds in Germany.
According to the expert, if at least some of them send funds to cryptocurrency products, then the cost of bitcoin will begin to increase.
Back in the winter of last year, it became known that German banks began to look for ways to enter the crypto sphere. They asked regulators to allow them to process transactions with bitcoin and other coins.