A new law in Germany now allows an estimated USD 415B investment in cryptocurrency. As reported, the new law takes effect today, just days after Coinbase received its license from Germany’s Financial Supervisory Authority(BaFin), allowing it to serve the German Market.

Germany’s Fund Location Act, proposed in April and supported by Parliament shortly thereafter, permits Spezialfonds, or special funds, to invest as much as 20% of their portfolios in crypto. Should each Spezialfond opt to allocate the full 20% in crypto, that would equate to EUR 350 billion (USD 415 billion), from the perspective of the assets under management (AUM) of such financing in Germany.

Spezialfonds are the most superior investment channel in Germany, comparable to the supported assets for foundations. The new law will likewise apply to monetary organizations, insurance agencies and benefits reserves that have been set up recently.

In addition, Germany’s current crypto regulations states that all German residents and institutions are permitted to buy/sell/hold cryptocurrencies, as long as it is done through a BaFin-licensed exchange. A big allocation of crypto to this market could result in significant developments across Europe, since Germany holds the biggest economy among the European countries. This could result in more European nations following in the footsteps of Germany, and adopting cryptocurrency.