Proposed Legislation in Germany Could Allow $425B to Flow Into Crypto: Report

Under the legislation, wealth managers known as Spezialfonds would be able to invest up to 20% in digital assets.

AccessTimeIconApr 29, 2021 at 2:48 p.m. UTC
Updated May 9, 2023 at 3:18 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A new German law could theoretically bring as much as €350 billion (~$425 billion) of institutional investment into the cryptocurrency market, financial newspaper Boersen Zeitung reported.

  • The report cites analysis by Sven Hildebrandt, CEO of Distributed Ledger Consulting (DLC).
  • The bill, which was approved by Germany’s parliament last week, is expected to take effect on July 1 if it is approved by the upper house, the Bundesrat.
  • Under the legislation, wealth and institutional investment fund managers, known as Spezialfonds (special funds), will be able to invest up to 20% of their portfolio in crypto.
  • If they all did so to the 20% limit, nearly $425 billion would move from other assets into crypto, based on the total assets under management (AUM) of such funds in Germany.
  • The legislation could prove a significant development for wider acceptance of crypto institutional investment across Europe, given Germany’s status as the eurozone’s most powerful economy.
  • There have been other signs of such acceptance of crypto emanating from Germany in recent months, with Deutsche Bank announcing its intention to offer custody and brokerage services to its institutional clients in December.
  • Binance to Reenter Japan in August 2 Years After Regulator's Warning
    06:31
    Binance to Reenter Japan in August 2 Years After Regulator's Warning
  • FTX Bankruptcy Claims Deadline; UK Crypto, Stablecoin Rules Passed Into Law
    02:16
    FTX Bankruptcy Claims Deadline; UK Crypto, Stablecoin Rules Passed Into Law
  • What the U.S. Can Learn from the World's Best Crypto Policies
    08:14
    What the U.S. Can Learn from the World's Best Crypto Policies
  • Rep. French Hill on Crypto Regulation Outlook
    10:17
    Rep. French Hill on Crypto Regulation Outlook
  • Disclosure

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

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, 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.