Dekabank is a Germany based asset fund manager firm. After a new law that comes into effect in Germany from Monday, Dekabank is considering Investment in Bitcoin.
Recently German authorities passed a rule about crypto purchase that will come into effect from incoming Monday i.e 2 August 2021. According to the new rule, fund management institutions are allowed to invest in Bitcoin up to 20% of their total holding funds.
But beside the new law that will allow to institutions to invest in Bitcoin are under in another restriction. Fund manager firms should belong to the category of pension companies and insurers.
There are around 4000 fund manager institutions in German but only DekaBank is eligible according to new law ( may be few another may eligible but many media news claimed that Deka bank in particular is eligible)
A spokesman of Dekabank, told Bloomberg, that they are considering investing in Bitcoin.
Dekabank currently holds around $403 billion worth of funds under their management.
The firm responded to the Bitcoin Magazine news media and stated
“Deka doesn’t offer any open-ended special AIFs that can invest in cryptocurrencies at the moment. Currently we are reviewing our options but to be clear, no decision has been made yet.”
So clearly they are planning to invest but not 100% sure to invest.
A financial services advisor, Kamil Kaczmarski, also shared his point on Bitcoin Investment by the Germany Institutions. They said that in the present time institutions will go with Bitcoin Investment as an experiment. Because they are out of caution for the perceived short-term volatility in Bitcoin’s price. So institutions will invest at “low level”. Probably they meant to say that institutions will not go for a full 20% of funds Investment.