German Law Allowing $415B Investment Into Crypto Takes Effect

The law allows "special funds" to invest up to 20% of their assets in crypto.

By Jamie Crawley

Jul 1, 2021 at 10:45 a.m. UTC

Updated Sep 14, 2021 at 1:19 p.m. UTC

German parliament Bundestag — The chambers of Germany's parliament in Berlin.

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Jamie Crawley

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

A new law in Germany that could theoretically prompt up to $415 billion to flow into crypto takes effect Thursday.

Germany's Fund Location Act, introduced in April and approved by parliament shortly thereafter, permits "Spezialfonds," or special funds, to invest as much as 20% of their portfolios in crypto.
The law came into effect today.
Should every Spezialfond choose to allocate the full 20% in crypto, that would equate to €350 billion ($415 billion), based on the total assets under management of such funds in Germany.
The figure was arrived at by Sven Hildebrandt, CEO of Distributed Ledger Consulting, and was cited in a report by financial newspaper Boersen Zeitung in April.
Spezialfonds are the dominant institutional investment vehicle in Germany. A sizable allocation of this market toward crypto could have profound implications across Europe, because the country has the eurozone's largest economy.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Jamie Crawley