The government of Germany decided to give a “green light” to a law that will allow institutional funds to invest (in the order of 20%) in crypto assets. This Law has been in force since August 2, 2021, allowing the so-called “Spezialfonds” to have stakes of up to 20% in Bitcoin and other cryptocurrencies under fixed investment rules.

Conservative start

This law represents a starting point for institutional investors and “opening” the way for greater acceptance of Bitcoin and other crypto-assets for pension funds and insurance companies. A German mutual fund association worker indicates that most funds will remain below that percentage initially since institutional investors (such as insurers) are strictly regulated in their investment strategies and must express their desire to invest in cryptocurrencies.

Institutional funds law

This law, approved in early July 2021, represents an important evolution in the way German legislators handle digital assets. BaFin, Germany’s Federal Financial Supervisory Authority, insists on being “cautious” concerning investing in digital assets, while local authorities encourage blockchain network innovation in the country.


In 2019 Germany initiated a comprehensive blockchain strategy in which 44 adoption measures were promoted to be carried out by the end of 2021. With the new blockchain and crypto approach, measures were also introduced that will facilitate investors’ access to the digital environment and crypto. Germany has become a leading market for products traded on cryptocurrency exchanges (ETP).


Executives from various companies say they are optimistic about offering German clients the ability to incorporate Bitcoin or any recognized crypto asset into their retirement plans. One of the main reasons for this project is to inform and empower people to choose how to allocate their investments for their retirement, choosing the alternative that best suits their needs and objectives.

What do you think about this topic? Do you think this German initiative should be replicated in other countries?

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