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The new law, which allows German dominant investment funds to invest up to 20% of its portfolio in cryptocurrencies, could boost investments in BTC by up to $ 415 billion. German The law, passed by parliament in April this year, entered into force on July 1.
Up to 20 percent of funds can go to the purchase of cryptocurrencies
The new implementation means that by Bitcoinu and other cryptocurrencies could bring in huge amounts of new money if each of the 4,000 dominant investment this is now made possible by the new law. These funds currently manage a total of EUR 1.87 trillion.
According to the previously valid wording of the law, these could not institution Allocate any of your resources to bitcoin and other cryptocurrencies as an investment.
Are good times waiting for the cryptocurrency market?
Now, however, it is quite likely that many of these institutions will find Bitcoin as a valuable asset in which to diversify their investments. And this scenario is also relatively realistic, as these are investment funds that want to have the most liquid assets in their portfolio.
However, according to Sven Hildebrandt, CEO of Distributed Ledger Consulting (DLC), who drafted the new law, it may take some time for the money to actually come to market.
“IT’S A FACT BIG THING It doesn’t happen overnight, but we’re talking about the biggest investment tool we have in Germany, it’s literally all the money.”
Conclusion
This is really big news, because we are talking about the implementation of the directive of countries that are among the most important countries of the European Union, and it can be expected that the same support can be obtained by other organizations or funds across Europe.
In addition, Germany has its own legislation clearly shows that it is interested in being one of the most important players in the cryptocurrency market. It seems that interesting times await the cryptocurrency market. Sometimes it may take a while to wait for the first player, but then it’s an avalanche, because no one wants to be the last.
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