BVI Crypto Guide

This guide is intended to provide an introduction to this new area and an overview of the regulatory options for crypto investments by funds.

Crypto assets are digital assets that are also colloquially referred to as ‘cryptocurrencies’, for example Bitcoin and Ethereum. They are not financial instruments within the meaning of the Markets in Financial Instruments Directive (MiFID) and the German Securities Trading Act (WpHG).

Since 2021, special funds with fixed investment conditions have been able to invest up to 20 per cent of fund assets directly in crypto assets in accordance with Section 284 KAGB. The Future Financing Act, which came into force at the end of 2023, also provides a corresponding direct investment option of up to 10 per cent for other investment funds in accordance with Section 221 KAGB. Other mutual funds can invest indirectly in crypto assets by acquiring securities that track the performance of the underlying crypto asset.

BVI Crypto Guide (available in German only)