A new law in Germany could open up as much as $415 billion in crypto investments

In this photo illustration, a visual representation of Bitcoin cryptocurrency is pictured on May 30, 2021 in London, England. Bitcoin is a decentralised digital currency, which has been in use since 2009.

A new law in Germany could open up as much as $415 billion in cryptocurrency investments, further legitimizing the rapidly evolving asset class and possibly spurring the country as among the main investment hubs in Europe, CoinDesk first reported.

The law, Germany’s Fund Location Act, allows special funds or “Spezialfonds” to invest as much as 20% of their portfolio into cryptocurrencies.

And should each special fund decide to invest the maximum percentage allowed into digital assets, it would equate to $415 billion, a figure computed by Sven Hildebrandt, CEO of Distributed Ledger Consulting, according to financial newspaper Boersen Zeitung.

“We could witness a significant flow of investment into bitcoin following the approval of a new law in Germany that permits special funds,” Alexandra Clark, sales trader at digital asset broker GlobalBlock, said in a note.

Special funds are investment vehicles used primarily by institutions. Hildebrandt told Decrypt that around 4,000 existing investment funds will be eligible.

“We are talking about the largest investment vehicle that we have in Germany-literally all the money is in there,” he told Decrypt in April.

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