Germany’s Federal Financial Supervisory Authority (BaFin) has allowed institutional funds to invest as much as 20% of their assets in cryptocurrencies, FT reported.
The new rules were imposed at the start of the month, as BaFin weighs what is described as the risky and speculative nature of digital tokens against the possibility of welcoming new technologies.
Analysts believe that funds will be reluctant and very cautious should they invest in cryptocurrencies, considering the pension promises made to investors who are very conservative.
Germany has been moving to roll out digital initiatives such as allowing firms to offer debt securities via blockchain and plans to reduce paperwork for funds. Officials also announced new measures that remove asset managers from the same regulations as lenders.
Assets in Spezialfunds stood at over €2tn at end-March. BTC is down 6.30%, ETH down 9.90%, and ADA down 5.72%.