INVESTMENT OF $500 BILLION BY THE GERMAN UNION TO INCREASE BITCOIN EXPOSURE

According to Bloomberg, Frankfurt-based asset management Union Investment is experimenting with Bitcoin exposure certificates as part of a trial program. If the program is successful, other funds will be able to invest in Bitcoin.


"We are considering adding bitcoins in small amounts of 1% to 2% maximum to a couple of other funds for private investors," portfolio manager Daniel Bathe told Bloomberg.

The certificates will be accessible in the fourth quarter of 2021, although no specific date has yet been set.

For the first time, Union Investment included Bitcoin in a mixed portfolio at the beginning of this year. These were Delta 1 certificates held by Flexibel Pro, a private fund. These funds are permitted to invest up to 1% of their assets in Bitcoin, and according to Bathe, they are now slightly below that threshold.

DekaBank, one of Union Investment's biggest competitors, has yet to provide any Bitcoin-related funds.

“We are seeing a rising interest in crypto assets among mixed fund managers,” said Kamil Kaczmarski, a financial services expert at Oliver Wyman in Frankfurt.

Initially, many typically conservative German investment managers are expected to offer Bitcoin exposure via certificates and other derivatives.

According to Bloomberg, Sparkassen just made Bitcoin and cryptocurrency investments available to its customers via certificates, ETFs, and individual stocks.

The news comes after a new German regulation went into force in August, allowing Spezialfonds to invest up to 20% of their assets in Bitcoin.

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