In Germany, new legislation enabling managers of the most popular institutional investment funds—the so-called Spezialfonds—to allocate 20% of them to crypto-assets is set to come into force on July 1.

The measure has been hailed as a big boost to Germany’s position as a financial investment hub, and experts believe it will nurture the crypto industry as a whole by further legitimizing the asset class.

The law is to be cleared by Germany’s federal parliament, and is due to be rubber-stamped by the country’s Federal Council imminently. It will apply to both existing Spezialfonds and to new ones set up by institutional investors such as financial institutions, insurance companies, and pension funds.

Around €1.2 trillion ($1.8 trillion)  is invested into Spezialfonds, which have fixed investment conditions, and right now, 0% of the funds are invested in cryptocurrencies. In all, around 4,000 existing investment funds will now be eligible to invest in Bitcoin and other crypto assets.

It's not the first time Germany leads with pro-crypto legislation. The bold move follow the same path of the introduction of a law at the beginning of 2020 which allowed banks to sell and store cryptocurrencies. Since then, Bitcoin exchange-traded funds (ETFs) have proliferated on Germany’s exchanges.