The German Bundestag approved a bill allowing asset management companies to invest up to 20% of their funds in digital assets.

Under the bill, investment fund managers known as spezialfonds will be able to invest up to 20% of their portfolio in cryptocurrency. The new bill, approved by the German parliament, could drive up to $425 billion (€350 billion) to the cryptocurrency market, according to the German financial newspaper Boersen Zeitung. The calculations take into account the total assets managed by German investment funds and are based on a report by Sven Hildebrandt, CEO of Distributed Ledger Consulting (DLC).

The bill, approved by the German parliament last week, is expected to enter into force on July 1, if approved by the German Federal Council.

It will mark a milestone for wider acceptance of cryptocurrency investment in Europe given Germany's status as the largest economy in the eurozone.

In December, Deutsche Bank announced its intention to offer custody and brokerage services to institutional clients.