According to news on July 30, Germany will allow some institutional-level funds to invest in cryptocurrency assets on a large scale for the first time. According to a law that will come into effect next Monday (August 2nd), so-called "special funds" with fixed investment rules can invest up to 20% of their assets in Bitcoin and other cryptocurrency assets.
These funds currently manage about 1.8 trillion euros ($2.1 trillion) in assets, which means they can invest up to 360 billion euros in the cryptocurrency market.
However, Tim Kreutzmann, a crypto asset expert at the German fund industry organization BVI, said: "Most funds will initially remain at a level well below 20%. On the one hand, insurance companies and other institutional investors have strict regulatory requirements on their investment strategies. On the other hand, they may not want to invest in cryptocurrencies."
In addition, professionals believe that the volatility of cryptocurrencies may make them unattractive to such investors in Germany because they are traditionally very conservative. He predicts that these funds will test cryptocurrencies at a low level, most of which will not be close to the 20% cap for at least 5 years.
DWS, the asset management subsidiary of Deutsche Bank, said it is closely monitoring developments, but currently does not plan to provide any funds to buy cryptocurrencies. DekaBank, one of Germany's largest asset management companies, said that the company has been considering investing in digital currencies, but has not yet made a decision.
But there is news that verifies the development of cryptocurrency in Europe
According to research conducted by Guardtime, a European deep technology company in Germany, Singapore, South Africa, the United Arab Emirates, the United Kingdom, the United States, France, Hong Kong, Sweden and Norway, it interviewed 902 adults over 18 years of age. The study found that 64% of adults may use the digital currency launched by the central bank and government of their country, 33% of them said they are very likely to use it, and only 10% of the respondents said they would never use the digital currency of the central bank. (CBDC). Guardtime is working with many central banks around the world to explore the development of digital currency. Its research shows that they strongly support the conversion of savings into CBDCs and payment of wages in digital currency.
This aspect reflects the ability of cryptocurrency to develop in Europe.
But this seems to represent the wishes of ordinary users. According to previous news from Golden Finance, the cryptocurrency ETP issuer 21Shares has established a partnership with the German online brokerage company Comdirect to introduce its cryptocurrency ETP into Comdirect's savings plan (Spar plan). Currently, 11 of 21Shares' ETP products listed in Germany are available on the Comdirect platform with zero commission.
This also represents the understanding and views of different investors on cryptocurrencies.
For example, the latest survey by the London crypto fund Nickel Digital Asset Management shows that hedge fund executives, wealth managers and institutional investors who already hold cryptocurrency assets intend to increase their cryptocurrency holdings. Among the 100 investors and wealth managers surveyed, 82% expect to increase their investment in digital assets between now and 2023. 40% of the respondents said they would "significantly increase their holdings", 7% said they planned to reduce their holdings, and 1% planned to sell their entire holdings.
Regarding investment reasons, 58% of respondents said that the main reason for increasing investment in digital assets is the prospect of long-term capital growth. Approximately 38% of respondents claimed that they have some exposure to crypto assets, which makes them more confident in the asset class, while 37% believe that more leading companies and fund managers invest in crypto assets as their further investment One of the reasons.
The study was conducted online in May and June, and surveyed 50 wealth managers and 50 institutional investors, all of whom had previous exposure to crypto assets, from countries across the United States, the United Kingdom, France, Germany, and the UAE.