Union Investment will add BTC to its investment fund portfolios – Bits Media

Asset management company Union Investment is launching a pilot cryptocurrency investment program and plans to add BTC to the portfolios of several of its investment funds.

2 August in Germany came into force the law, permitting institutional funds ownership of cryptocurrency and investing in cryptoassets. This legislation paved the way for wider adoption of digital assets in the German economy.. Within three years, the expected inflow of investments into the digital asset market may be from $100 to $657 billion.

Since Germany is one of the largest economies in the world, this news was welcomed by many participants and industry leaders both in the country, and abroad. Union Investment Portfolio Manager Daniel Bath (Daniel Bathe) said:

“We do not create new funds, but we are considering the possibility of adding bitcoins to existing portfolios for private investors, while in small quantities - maximum 1-2%. More precisely, everything will become known in the IV quarter ".

Bat stressed, that investment in cryptocurrency will allow Union Investment to diversify risks, associated with traditional assets, eg, stocks or bonds.

Union Investment is part of the DZ Bank Group, bringing together more 800 cooperative banks in Germany. As of 30 june 2021 years Union Investment manages assets worth more than $507 billion, making it one of the largest management companies in Germany.

At the beginning 2021 of the year Union Investment included cryptoassets in the Delta mixed fund for the first time 1 в PrivatFonds Flexibel Pro. The fund was allowed to invest in cryptocurrency no more than 1% and, according to Bata, 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 Agency for Financial Supervision (BaFin) drew the attention of retail investors to the risks, associated with investments in crypto assets.