A Bloomberg News Agency report indicated that a German law is expected to enter into force tomorrow, Monday, August 2, that institutions can, by law, hold digital currencies with up to 20% of the total assets owned by the institution.
CoinTelegraph, for its part, noted that this sets the stage for broader institutional acceptance of Bitcoin and other cryptocurrencies from German pension funds.
The law concerns institutional investors' funds such as pension funds and issuers, and these funds manage $2.1 trillion.
Tim Kreutzman, who works for the Association of Funds Investments (BVI), told Bloomberg: Fund holdings will remain below 20% to begin with. On the one hand, institutional investors such as fund issuers follow strict regulatory requirements for investment strategies. On the other hand, they would like to invest in digital currencies.
The law marks a shift in Germany's regulation of the cryptocurrency market. Meanwhile, the German financial authority continues to warn against investing in digital assets. However, other financial regulators are encouraging blockchain technology.
