German Institutional Funds Allowed up to 20% in Crypto Holdings
Certain institutional funds with fixed investment rules in Germany can now put up to 20% of their holdings in cryptocurrencies.
These so-called Spezialfonds will now be able to do this according to a law taking effect on Monday. The funds can only be accessed by institutional investors, such as pension companies and insurers. They currently manage about 1.8 trillion euros ($2.1 trillion).
German financial conservatism
Crypto assets expert at Germany’s fund industry body BVI Tim Kreutzmann believes that most funds will stay well below 20%. “On the one hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other hand, they must also want to invest in crypto.”
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