According to Boersen-Zeitung, or the stock exchange newspaper, the new legislation was passed last week in the Bundestag, or Bundestag, the parliament of Germany. The new law will enter into force on July 1.
There are no fewer than 4,000 Special Funds in Germany that jointly manage more than € 1.2 trillion or $ 1.8 trillion. They are exclusively for institutional investors. The funds are allowed to allocate up to 20% of their assets to crypto, so that in theory could be a total amount of € 350 billion (or $ 422 billion) entering the crypto market.
However, we will have to wait and see how much these funds will actually put into crypto. Germany seems to be increasingly embracing the crypto market, so we have recently seen more and more bitcoin exchange-traded products (ETPs) launch on the German exchange.
Despite this, BaFin, the country’s financial regulator, warned that Binance’s new stock tokens may be in violation of European law. These new Binance stock tokens track the price of stocks such as Tesla (TSLA), Coinbase (COIN) and MicroStrategy (MSTR). Binance could be fined € 5 million ($ 6 million) for this, according to BaFin.