Asset manager Union Investment is launching a pilot cryptocurrency investment program and plans to add BTC to the portfolios of several of its investment funds.
On August 2, a law came into force in Germany allowing institutional funds to own cryptocurrency and invest in cryptoassets. This legislation paved the way for a wider introduction of digital assets into the German economy. Within three years, the expected inflow of investments in the digital asset market can range from $ 100 to $ 657 billion.
As Germany is one of the largest economies in the world, the news was welcomed by many participants and industry leaders both at home and abroad. Union Investment portfolio manager Daniel Bathe said:
“We are not creating new funds, but are considering the possibility of adding bitcoins to existing portfolios for private investors, while in small quantities – a maximum of 1-2%. More precisely, everything will become known in the IV quarter. ”
Bat stressed that investing in cryptocurrency will allow Union Investment to diversify the risks associated with traditional assets such as stocks or bonds.
Union Investment is part of the DZ Bank Group, which unites more than 800 cooperative banks in Germany. As of June 30, 2021, Union Investment has over $ 507 billion in assets under management, making it one of the largest asset management companies in Germany.
In early 2021, Union Investment included cryptoassets for the first time in the Delta 1 Mixed Fund in PrivatFonds Flexibel Pro. The fund was allowed to invest no more than 1% in cryptocurrency and, according to Bat, this level has not yet been reached.
At the same time, German financial regulators require a balanced approach to investment. So, at the beginning of the year, the German Federal Financial Supervision Agency (BaFin) drew the attention of retail investors to the risks associated with investing in crypto assets.
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