Starting time on Aug. ii, 2022, German institutional funds will be able to hold up to xx% of their assets in cryptocurrencies, possibly setting the phase for wider mainstream acceptance of Bitcoin (BTC) and other crypto assets by the nation's pension funds.

As Bloomberg reported, the new law alters fixed investment rules governing Spezialfonds, besides known as special funds, which are only attainable to institutional investors such as pension funds and insurers. Spezialfonds currently manage about $2.one trillion, or i.8 trillion euros, worth of avails.

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Tim Kreutzmann, who works for German investment fund association BVI, told Bloomberg that almost funds volition probable stay well below the twenty% mark initially, explaining:

"On the 1 paw, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other mitt, they must also desire to invest in crypto."

The new rule, which was passed in early July, represents an important evolution in how German lawmakers govern digital assets. Germany's Federal Fiscal Supervisory Potency, better known as BaFin, continues to urge caution with respect to digital-nugget investing. At the same time, the fiscal watchdog encourages blockchain innovation in the country.

Germany first embarked on a comprehensive blockchain strategy in 2022, promoting 44 adoption measures that are set to be realized by the terminate of 2022. The new arroyo to blockchain and crypto besides introduced measures that would make it easier for investors to access digital investments.

The nation has besides become a leading market for cryptocurrency substitution-traded products (ETP). As Cointelegraph reported, investment production issuer 21Shares has partnered with German language brokerage Comdirect to provide crypto-focused ETPs to nearly 3 million customers.

Related: Binance to close down crypto derivatives trading in Europe