Germany has announced a new law that will allow “special funds (spezialfonds)” to chip in about 20% of the assets into cryptocurrencies. Analysts and experts estimate that with the new law if the special funds utilize their full capacity, the crypto markets can witness an influx of $415 billion.
Simon Peters, an analysts at online crypto trading platform eToro says: “Whilst this theoretical sum is unlikely to flow into cryptoasset investment in its entirety, the legal enactment is big news for the industry, and a vote of confidence for cryptoassets and their potential.”
“Spezialfonds are the leading institutional investment vehicles in Germany. Any sizable allocation into crypto would have a large impact, thanks to Germany’s status as the Eurozone’s largest economy.”
The market opened on Monday with a bullish sentiment with the movement showing big investors aka whales purchasing top cryptocurrencies. After dropping down about 5% last week, Bitcoin prices have stabilized between $34000 and $36,000.
While there have been a series of negative decisions coming from governments, the fact that the top tokens have sustained and the prices are still significantly higher than what they were at the beginning of the year, leaves investors with hope who are betting on a longer bullish run between September and October.