The German government has released new laws in favour of the crypto markets. From now (2nd August), German institutions can hold crypto legally. And reports suggest that a very high amount of crypto investments could flow into the market due to the same. In fact, it could be as high as $415 billion, seeing the huge institutional interest in crypto. Do note that the government has specified a limit on this. Companies cannot hold more than 20% of their assets under cryptocurrencies. This is probably to reduce risk and make sure that entire companies don’t die due to a market crash.
German interest in crypto
It is great to see that one of the world’s largest economies has allowed crypto. This also means there is no plan to ban such assets, and widescale adoption is soon coming on a global scale. The companies in the country have shown a very keen interest in the crypto markets and have been planning to get their hands in for quite a while. Even funds managing trillions of dollars are going to provide exposure to institutions for such investments.
The German government has taken a step forwards as it has accepted the digital asset revolution. In fact, the 20% limit is also temporary, and as the markets mature with time, this could very easily be changed. The laws will also make it simpler for large companies to invest in crypto, as there was a lack of clarity on the same before this. Germany’s adoption could also push other nations to do the same as they do, set precedence for smaller countries.
Germany has also introduced many new strategies in the crypto markets that will soon be active. This will make it easier for investors to buy and sell digital assets. At the same time, the country has one of the largest markets for ETFs in the crypto sector. This is also a very important thing as the ETF market is quite large, and a lot of people will take an interest in investing indirectly in crypto.
What are your thoughts on the new law under which the German institutions can now hold crypto legally? And do you think this will push adoption and incentivize other countries to do the same as well? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.