Germany's largest investment bank plans to invest in cryptocurrency under new law

The German government has passed a formal law allowing institutional investors to officially purchase Bitcoin and other cryptocurrencies, directly from the open market. Digital assets must be displayed on the balance sheet and account for no more than 20% of total investments.
Germany's Dekabank may become the first institutional client to invest in cryptocurrency under the new law.

Germany's largest investment bank plans to invest in cryptocurrency under new law

This largest provider of securities services in Germany has faced high demand for digital assets from its clients, owners of 4 million investment portfolios serviced by the bank. Dekabank is now discussing risk management and the specifics of maintaining and storing digital assets.
The law comes into force on August 2, but by that time the bank may not be ready to accept investments of Bitcoin and other cryptocurrency clients.
Bloomberg estimates that $2.1 trillion in investments by German institutional funds would fall under the new legislation. Theoretically, they are capable of "pouring" up to $415 billion into the cryptocurrency market; it won't happen overnight, but the influx of German investments in digital assets will grow steadily.
Germany's regulator has created a favorable environment for cryptocurrency investments, with 41 regulatory relaxations planned until the end of 2021. BaFin has taken a consistent stance of gradual acceptance of financial innovation in the form of digital currencies. The starting point was the launch of ETN units on German stock exchanges in 2018, backed by different types of cryptocurrencies.
FX24

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