Germany is about to allow legally the funds to invest in crypto, from July 1st - page 2.

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Quote from: NeuroticFish on June 30, 2021, 11:37:49 AM

I was thinking if I should post in Press or here, but I find it more appropriate here.
The news is rather old (April), but it's tomorrow when the act comes into reality.

Starting tomorrow, the investment funds from Germany will be allowed to invest up to 20% into crypto assets.
I guess that it won't be the full 20% of 1.87 trillion euro Cheesy

tomorrow, but it's a good news and a good start.

The original (German) news is here: https://t3n.de/news/deutschland-fondsstandortgesetz-krypto-1375731/
Google translated: https://translate.google.com/translate?sl=auto&tl=en&u=https://t3n.de/news/deutschland-fondsstandortgesetz-krypto-1375731/

I saw today that the fund that George Soros controls also applied for and was granted permission to invest in cryptocurrency today. It seems like even more institutional money is preparing to flow into it, but I suspect that they will be chasing smaller altcoins rather than Bitcoin which has a lot less room for growth than others. They might also be interested in the short selling side of trading if they're able to find a counter party to the transaction. In general it should be good to have more buyers, as it should ultimately make cryptocurrency more stable if more interested parties will be holding on to it for longer periods of time.

el kaka22

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This is basically the way to go, because Germany is a smart nation that has been always doing financially solid stuff as well.

At times I do start to realize why Germany had that whole ubermensch idea even though I am not German myself, did it veeeeeery wrongfully of course with Hitler, but the idea of Germans being better than others does have a merit compared to nearly 200 nations, maybe arguable about only less than 10 nations. Why? Because they have always done the right thing, this is the nation that came out of world war two as the losers and lived apart as two different nations with a wall, and look at them now, they literally had extra money left instead of have a deficit, it is that kind of nation now. Of course they will be the first big nation to get crypto to a higher degree acceptance because they know how important it can be for a nation to be first in innovation.

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most important of all is that this is a start. we can't expect the mass adoption to happen in one day. it has to be slow and start by little moves like this. this is also giving people a lot of confidence for investing in bitcoin since the government is now practically approving bitcoin's legitimacy as an investment so a lot of people who had believed the FUD until now will learn the truth and will look to invest in bitcoin.

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I wonder what the figure is just on this first day of the implementation. Does it highly speak of anticipation from the German people? Or is the excitement largely felt only from the side of Bitcoin fans from other parts of the world?

But perhaps the most important point is that Bitcoin is now being accepted by no less than Germany, a highly advanced country with a large economy. It means a lot to Bitcoin and its reputation. Perhaps the bigger reward will be brought by the ripple effect of this one.

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Quote from: janggernaut on July 01, 2021, 08:42:20 AM

Even with this good news can't take bitcoin to reach more than $40000 which mean we shouldn't really believe a news can make a coin skyrocket after it posted. Idk , but what i seen we will entering bear market because on covid pandemic still on here and the case even larger than before, just back on March 2020 when crypto market crashed too

The news is good and big, and that is what it is, even if it doesn't spontaneously affect the present price that much in the short period, it could play a part in mainstream adoption in the long period, I don't really think users are expecting the price to spike just immediately there's a positive news about Bitcoin in the media, only short term investors who want to 'get rich quick' expect the network to move in such direction.

Having said that, I don't think we can expect a bear market just yet, and even if we're to, it wouldn't be as a result of the pandemic, cause back when the pandemic "shed it's milk teeth" early last year, Bitcoin only fell momentarily, and was somewhat among the very few assets that were resistant to the crumbling effects of the pandemic.

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That is a really good start wow,,, 20% of funds is a huge amount. Like you said it will not be 20% of 1.8 trillion but imagine even 1% of that is 18 billion. And if that starts, then retail will for sure follow. I guess it will mainly be for Bitcoin/Ethereum though, or maybe even stablecoins for spread investments?

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Even with this good news can't take bitcoin to reach more than $40000 which mean we shouldn't really believe a news can make a coin skyrocket after it posted. Idk , but what i seen we will entering bear market because on covid pandemic still on here and the case even larger than before, just back on March 2020 when crypto market crashed too

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Quote from: davis196 on July 01, 2021, 05:55:51 AM

Quote

Jochen Schenk, Vice President of the Central Real Estate Committee (ZIA) shares this assessment, albeit for different reasons. Above all, he regrets that this means that private capital can no longer be channeled into urgent infrastructure and sustainability investments.

Yep,the German investment funds won't invest in infrastructure and sustainability investments.
They will gamble with cryptocurrencies,because the profit margins are bigger. Grin

There's nothing wrong with that.I assume that the institutional investors got tired of the low profit margins,provided by stock trading,so they are focusing their efforts on the cryptocurrency markets.
The fact that German investment funds will be allowed to put 20% of their capital into crypto doesn't mean that they will do so.

Yeah, that's the key here, they are looking for other assets such as crypto and make a big gamble (who hasn't), and as we have seen and experience, it's all timing here. If by chance the price of bitcoin goes to at least $100k at the end of the year, then good. If not, then I guess they will just become holder. And I think 20% is big investments already. So this is very good news not just for Germany but the whole of Europe as well.

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Quote from: Wexnident on July 01, 2021, 06:23:29 AM

20% is looking pretty big already imo. Even if they don't use the max 20%, even 10% is more than enough to return actual profits to them, and imo, is pretty big if they play it correctly. I hope this sparks interest for other nearby countries to consider investing once they see the advantage (hopefully) that Germany would receive with this move. Not to mention that this could potentially bring up the price in the short term, letting them profit quite a bit just from actually entering the market. Still depends if their entry actually moves it though (which I hope it would, we've had enough FUD for the past few weeks now).

This at least is positive news, while some countries are prohibiting the use of crypto, Germany is more open with it, allowing its citizens to invest legally. If there will be positive feedbacks from the users who will avail of this service, high likely that it will spread to their neighboring countries. And maybe, those countries which are still totally negative towards bitcoin or crypto, will change their perspective on handling these new digital currencies.

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20% is looking pretty big already imo. Even if they don't use the max 20%, even 10% is more than enough to return actual profits to them, and imo, is pretty big if they play it correctly. I hope this sparks interest for other nearby countries to consider investing once they see the advantage (hopefully) that Germany would receive with this move. Not to mention that this could potentially bring up the price in the short term, letting them profit quite a bit just from actually entering the market. Still depends if their entry actually moves it though (which I hope it would, we've had enough FUD for the past few weeks now).

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Quote from: Gozie51 on July 01, 2021, 05:46:37 AM

This is already a positive news that Germany to invest 20% . This will surely create an interest to join in the European zone. Germany being the voice that is strong in Europe both in technology and economy, it won't be hard for other European countries to toll this line.

What 20% of exactly they are investing though, I am kind of confused with the number put out in the OP so I am not sure if I can call it a big positive news but a positive news nonetheless. I think with this move by Germany, they will probably influence neighboring countries to do the adoption too.

davis196

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Quote

Jochen Schenk, Vice President of the Central Real Estate Committee (ZIA) shares this assessment, albeit for different reasons. Above all, he regrets that this means that private capital can no longer be channeled into urgent infrastructure and sustainability investments.

Yep,the German investment funds won't invest in infrastructure and sustainability investments.
They will gamble with cryptocurrencies,because the profit margins are bigger. Grin

There's nothing wrong with that.I assume that the institutional investors got tired of the low profit margins,provided by stock trading,so they are focusing their efforts on the cryptocurrency markets.
The fact that German investment funds will be allowed to put 20% of their capital into crypto doesn't mean that they will do so.

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This is already a positive news that Germany to invest 20% . This will surely create an interest to join in the European zone. Germany being the voice that is strong in Europe both in technology and economy, it won't be hard for other European countries to toll this line.

dothebeats

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Full 20% or not, the mere fact that they are legally allowing the funds from the government to be channeled into crypto investments is already a huge win. This may even spark a chain of events prompting other countries to do the same if Germany's example will be fruitful. While a lot of countries are still banning and tightening their regulations related to bitcoin and crypto, other progressives such as Germany pushes further into the uncertain path, becoming pioneers of the trend.

magneto

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This is certainly very exciting news.

I think that a lot of funds with really long time horizons such as pension funds would jump at the opportunity to invest in a store of value asset class like BTC that also has long term growth potential. It's also incredibly tax efficient given that you don't have any distributions to pay dividend income tax on.

Hopefully a lot more countries follow suit. A lot of the underperformance of big funds is really caused by these hawkish regulations that demand a certain percentage of bond holdings that bear negative to zero interest that is completely unwarranted.

Jating

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I agree, at least Germany being one of the leading crypto friendly in Europe are still at it, even though some of its neighbouring countries are against bitcoin. 20% is a good ball park number to start it, at least they can adjust depending on the market sentiments and how their investors are willing to invest in a volatile market. So welcoming news indeed, and just like what we wanted, hope that some governments in Europe follow as well. It's a win-win situation anyways, so they might as well dig their hands on the cookie jar.

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20% invested in crypto is still a good thing and I think that's worth the wait for many crypto users for Germany to invest in crypto, I am not trying to jinx anything but the prices bitcoin and other cryptocurrencies will definitely go up this month.

NeuroticFish

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I was thinking if I should post in Press or here, but I find it more appropriate here.
The news is rather old (April), but it's tomorrow when the act comes into reality.

Starting tomorrow, the investment funds from Germany will be allowed to invest up to 20% into crypto assets.
I guess that it won't be the full 20% of 1.87 trillion euro Cheesy

tomorrow, but it's a good news and a good start.

The original (German) news is here: https://t3n.de/news/deutschland-fondsstandortgesetz-krypto-1375731/
Google translated: https://translate.google.com/translate?sl=auto&tl=en&u=https://t3n.de/news/deutschland-fondsstandortgesetz-krypto-1375731/

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