Following the passage of more favorable legislation governing Spezialfonds, German funds and asset managers are broadening their scopes to include cryptocurrency investments.
Asset manager with a $500 billion market capitalization With the addition of Bitcoin (BTC) to multiple investment funds as part of a focused trial program for its institutional clients, Union Investment provides solid evidence that cryptocurrency is becoming more mainstream in Europe’s largest economy.
A spokesperson for the Frankfurt-based institution told Bloomberg on Monday that it is considering including bitcoin (BTC) in a small number of investment vehicles that will be restricted to private investors.
The exposure to Bitcoin will be limited to no more than 2 percent of total assets for each of the three funds. Although no specific schedule was provided, portfolio manager Daniel Bathe said the new investing approach is anticipated to begin in the fourth quarter of this year.
Union Investment is the investment branch of the DZ Bank Group, which is comprised of over 800 cooperative banks and other financial institutions. Union Investment had $507 billion in assets under management as of June 30, 2021, making it one of the top asset managers in Germany.
Germany is swiftly becoming as a hub for cryptocurrency investments, particularly among institutional investors and hedge funds.
On August 2, a new rule allowing institutional funds to own cryptocurrency went into effect, paving the way for a broader adoption of digital assets, including among German pension funds, in the coming years. While this is going on, German security broker S Broker has lately unveiled a new suite of cryptocurrency-related product offerings.
According to a recent survey conducted by financial comparison website Finder, Germans are less likely than other Europeans to use cryptocurrency in their daily lives.
According to the results of the survey, which included 42,000 participants, only 11 percent of Germans had any exposure to digital assets. Despite the fact that it was higher than the United States and the United Kingdom, it was significantly lower than emerging markets and other European countries.
Bitcoin is making headlines once more as the first-born cryptocurrency creeps closer to the $52,000 mark. When compared to its summer low, the price has rebounded almost 79 percent. As a result of this, Bitcoin’s overall market capitalization is once again on the verge of surpassing $1 trillion.
