DWS has launched two new Xtrackers ETCs in partnership with Galaxy Digital Holdings Ltd, designed to give investors access to bitcoin and Ethereum.
The firm writes that the new ETCs offer investors the opportunity to participate in the performance of the two biggest digital assets by market capitalisation and to integrate them easily and cost-effectively into their portfolios. The Xtrackers Galaxy Physical Bitcoin ETC securities and the Xtrackers Galaxy Physical Ethereum ETC securities were listed on Deutsche Börse.
“Since the first Bitcoin transaction in 2009, digital assets have developed from a niche technology innovation to a globally recognized asset class. With a combined market capitalisation of more than USD 1.7 trillion, bitcoin and Ethereum alone are now too significant for investors and asset managers to ignore,” says Manfred Bauer, Global Head of DWS’ Product Division and Member of the Executive Board at DWS Group.
DWS has entered into a strategic partnership with Galaxy to advance digital asset adoption in Europe through the partners’ combined expertise. Galaxy offers a broad range of digital asset products and services, the firm says. “We are delighted to be working with Xtrackers to offer investors institutional-grade access to digital assets and to support them with our deep digital asset expertise,” says Steve Kurz, Global Head of Asset Management at Galaxy.
The new Xtrackers digital asset ETCs offer the typical liquidity and transparency of ETPs, the firm says, and combine long-standing DWS partners from the traditional financial system with innovative digital asset-native service providers. State Street will act as Issuing and Paying Agent and Administration Agent, while MSCI will provide the bitcoin and Ethereum reference prices. The products are 1:1 physically backed utilising two cryptocurrency custodians, Zodia Custody and Coinbase, which store the cryptocurrencies in segregated offline (“cold”) storage custody accounts. The annual product fee is 0.35 per cent.
