A spokeswoman for Dekabank, one of Germany’s top asset managers, told us today that the firm is considering investing in Bitcoin.
The disclosure comes ahead of a new German regulation that takes effect on Monday, allowing Spezialfonds to invest up to 20% of their holdings in Bitcoin.
Special funds are mostly utilized for investments by institutions such as pension funds and insurers in Germany. Dekabank would be one of around 4,000 German companies authorized to buy Bitcoin under the new legislation.
Dekabank, which manages $403 billion in assets, responded to Bitcoin Magazine with the following statement:
“At the time, Deka does not have any open-ended special AIFs that can invest in cryptocurrencies. We are now considering our alternatives, but no decision has yet been taken.”
In another section of the research, financial services expert Kamil Kaczmarski said that usually conservative German investors might start with a “low level” of Bitcoin to avoid the perceived short-term volatility.
According to his estimates, it will take at least five years for the majority of the money to reach the 20% mark.
Institutional investors who have access to Spezialfonds, which can acquire Bitcoin, manage a total of $2.1 trillion.
“Most funds will initially keep well below the 20% mark,” said Tim Kreutzmann, a crypto asset expert at BVI, the German financial industry’s competence center.
Deutsche Bank AG, a multinational investment bank and financial services firm, might start offering funds that acquire Bitcoin under the new rule, but they have not yet disclosed any plans to do so.