Dekabank, one of Germany's major asset managers, is considering Bitcoin investment, a representative for the company told Bloomberg today.
The announcement comes ahead of the implementation of a new German law on Monday that would allow Spezialfonds to invest up to 20% of their assets in Bitcoin.
In Germany, special funds are mostly utilized for institutional investments by pension funds and insurers. Dekabank would be one of around 4,000 German companies authorized to purchase Bitcoin under this new regulation.
In response to Bitcoin Magazine, Dekabank, which now manages $403 billion in assets, stated the following:
"Deka does not yet provide an open-ended special AIFs that can invest in cryptocurrency. We are now examining our alternatives, but no decision has been taken."
Similarly, Kamil Kaczmarski, a financial services expert, said in the study that typically conservative German investors could experiment with Bitcoin at a “low level” at first, out of fear for Bitcoin's 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 with access to Spezialfonds that can buy Bitcoin presently manage around $2.1 trillion.
“Most funds will initially keep well below the 20% mark,” said Tim Kreutzmann, a specialist on crypto-assets at BVI, the competence center for the German fund’s sector.
Millions of Germans save via investment funds and certificates. For Sparkasse (German Savings Bank) clients alone, handle approximately EUR 300 billion, making us one of the most prominent suppliers of these products. They are the Sparkasse banks' securities services, suppliers.
They integrate banking and investment under one roof. Every day, its consumers profit from this mix. This is evident not just in our high capital market ratings.
For more than a century, investors and institutional partners have appreciated our dependability. We receive funding from the Bundesländer (German federal states) for everything.
DekaBank is one of Germany's most significant investors. Employees at the bank guarantee that the funds of the bank's investors are appropriately invested, and the company provides a healthy work-life balance.
DekaBank also makes investments in modern art and architecture, science, sports, and social causes.