Germany recently approved bitcoin, why exactly is the approval required and what will happen after approval ?
It just provides legitimacy to Bitcoin and more people will feel comfortable investing in Bitcoin. A lot of people, apart from institutional investors, are concerned about the reputational risk associated with cryptocurrencies. With the government clarifying its stance, they may go ahead and invest.
I agree and that's a win win situation for everybody involved. The more people we get into crypto the bigger the market cap and coins values.