The German Federal Parliament has passed a bill that allows German institutional investors to invest in cryptocurrency through a special fund. If approved by the Federal House of Councilors, it is expected to take effect on July 1. German financial news media Börsen-Zeitung and others reported.
In the new bill, which passed the German federal parliament last week and awaits approval from the Federal Council, it is the largest of its portfolio as a special fund to be established by financial institutions such as insurance companies and pension funds in addition to the existing special fund’Spezial fonds’ invested by many institutional investors. It contains content such as that 20% can be covered by cryptocurrency. If passed, the bill is expected to go into effect on July 1.
Special funds are for institutional investors, and there are already more than 3,000 special funds in operation in Germany. According to data from IPE, the total amount of operations as of 2019 amounted to about 2,000 trillion won.
Until now, there has been no case of special funds investing in cryptocurrency due to lack of reorganization of related laws, but German Congressman Frank Schäffler, who responded to the report by Cryptocurrency Media Decrypt, said, It is an important step in acceptance. “This bill is going in the right direction and we support it.”
In Germany, in February of last year, the Federal Financial Supervisory Service (BaFin) unveiled a new guideline that regards cryptocurrencies, including bitcoin, as “financial products”. It has introduced a regular license system for a custodial company that stores customer cryptocurrencies. In addition, since various ETPs such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), etc. are already listed and traded on the digital stock exchange platform Xetra of the German Stock Exchange, institutional and individual investors are cryptocurrencies. Investment demand is on the rise.
On the other hand, BaFin said in March of this year, “Bitcoin and other cryptocurrencies are highly risky and speculative,” and urged general investors to be alert to the risks of cryptocurrency investment.
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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.