DACH funds can inject $ 657 billion in digital assets in 3 years

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In three years, between $ 100 and $ 657 billion could be injected into the digital asset market of the DACH region, which includes the German-speaking countries of Germany, Austria and Switzerland. according to a report published by the Russian think tank focused on technology MindSmith .

About 88% of the funds that responded to the survey and that focus on the German-speaking region of Europe do not currently invest in digital assets. However, nearly half, or 46%, of DACH-focused mutual funds are interested in digital assets and ready to explore the digital asset market, according to the study.

In addition, 7% plan to invest by the end of this year.

“ market will still need time to perfect itself, but we are already seeing how funds are rapidly turning their attention to the digital asset market. And the imminent introduction of the digital euro will only accelerate the mass adoption of new financial technologies, “said Ruslan Yusufov, Managing Partner at MindSmith. Cryptonews.com.

MindSmith says the report was developed in collaboration with decentralized finance (DeFi) and the developer of the blockchain platform. Ongrid systems and interdisciplinary research group DEKIS from Catholic University of Avila in Spain.

survey, which elicited responses from representatives of more than 70 funds across the region, was scheduled to coincide with the introduction of the German fund allocation law. legislation allowed around 4,000 German special funds (hot funds) to invest up to 20% of their assets under management in crypto assets as of this month.

Currently, there are approximately 1.2 trillion euros ($ 1.43 trillion) invested in Spezialfonds with fixed investment conditions, according to the report, which adds:

“Considering that around 46% of respondents are more or less interested in investing in digital assets, the potential investment volume over the next three years could be around [EUR 552bn (USD 623.2bn)]. «

Although analyzed with conservative estimates, they elaborated, “7% of those surveyed are in a late planning phase”, which means that by the end of 2021 we could expect investments in digital assets of up to 84,000 million euros (99,700 million dollars ).

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Up to 14% of respondents are considering exposing their funds to DeFi solutions, as indicated by the collected data.

Some of the potential obstacles to increasing crypto-focused investments by funds in the region include regulatory uncertainty, according to 86% of respondents.

“However, it is at this time that the market is making significant progress in this area,” the report notes. “Regarding the lack of service providers and the availability of infrastructure, which has become a barrier for 57% of respondents, we have also seen significant progress from regulators recently.”

Speaking about the German law on fund tracing, Lucia della Ventura, PhD Researcher in decentralized AI and Legal and Compliance Manager at treasury technology platform Ledgermatic , said that it “represents an important step forward in stabilizing the cryptocurrency market.” and reflects the expectations of the EU institutions on how Member States should establish a clear legal regime on digital assets.

States are being asked to create an effective regulatory framework to increase investments in cryptocurrencies, pending the approval of the EU’s Cryptocurrency Markets Regulation (MiCA), it said in an emailed comment.

Della Ventura said that:

“With the Fund Location Act, Germany has just put a flag on the ground of its commitment to become one of the most important blockchain ecosystems in Europe and an attractive hub for investment in this field. As for Fintech companies, the German regulation represents a milestone, demonstrating that operating in a field of legal certainty can allow business growth while guaranteeing the protection of consumers and investors ”.

Laurin Bylica, co-founder of the Berlin-based DeFi infrastructure project Standard.io , called the law “a great opportunity” for Spezialfonds financed exclusively by institutional investors, including insurance and pension funds, which came under heavy pressure. after having to cut your benefit plans or your guaranteed interest rates at the beginning of the year. 2021.

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“Adding cryptocurrencies to their portfolios will not only be a great hedge against fiat currency inflation, but will also allow strictly regulated institutional investors to get an exceptional return on their investments,” Bylica said.


To find out more: – EU-funded fund mocks the push to invest in ‘digital assets’ with surprising move – 4,000 German funds approved to start investing in cryptocurrencies

– Deutsche Börse Group, TP ICAP make crypto bets with new plans and investments – German regulator refuses to intervene in token dispute over Binance Stock

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