Union Investment, a $ 500 billion wealth manager, is planning to add Bitcoin (BTC) to several investment funds as part of a targeted pilot program for its institutional clients, offering compelling evidence that cryptocurrencies are becoming more prevalent in the wider European economy.
On Monday, the Frankfurt-based institution has declared Bloomberg is considering adding BTC to a small number of investment funds, which will only be available to private investors. For each fund, exposure to Bitcoin will be limited to no more than 2% of the total assets. Daniel Bathe, portfolio manager, said the new investment strategy is expected to start in the fourth quarter, although no firm date has been provided.
Union Investment is the investment arm of DZ Bank Group, an institution with over 800 cooperative banks. As of June 30, Union Investment had $ 507 billion in assets under management (AUM), ranking it as one of the largest German wealth managers.
Germany is fast becoming a cryptocurrency investment hub, especially among institutional players. On August 2, a new law came into effect allowing institutional funds to hold cryptocurrencies, setting the stage for a wider spread of digital assets, including among German pension funds. Meanwhile, German securities broker S Broker recently announced a suite of products focused on cryptocurrencies.
According to a recent survey conducted by Finder, small German investors don’t rank very high from a cryptocurrency adoption perspective. The 42,000-person survey estimated that only 11% of Germans had exposure to digital assets. While it is a higher figure than the US and UK, it remains well below emerging markets and other European nations.
Bitcoin is attracting attention again, pushing above $ 52,000. The price has recovered about 79% from its summer low: Bitcoin’s total market capitalization is once again approaching $ 1 trillion.
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