A new law in Germany that could theoretically prompt up to $415 billion to flow into crypto takes effect Thursday.

Germany's Fund Location Act, introduced in April and approved by parliament shortly thereafter, permits "Spezialfonds," or special funds, to invest as much as 20% of their portfolios in crypto.The law came into effect today.Should every Spezialfond choose to allocate the full 20% in crypto, that would equate to €350 billion ($415 billion), based on the total assets under management of such funds in Germany.The figure was arrived at by Sven Hildebrandt, CEO of Distributed Ledger Consulting, and was cited in a report by financial newspaper Boersen Zeitung in April.Spezialfonds are the dominant institutional investment vehicle in Germany. A sizable allocation of this market toward crypto could have profound implications across Europe, because the country has the eurozone's largest economy.