DWS Revolutionizes Crypto Market with Bitcoin and Ethereum ETPs

DWS has introduced two ETPs (exchange-traded products) tracking Bitcoin and Ethereum on the Deutsche Boerse. Xtrackers Galaxy Physical Bitcoin ETC Securities (XXBT) and Xtrackers Galaxy Physical Ethereum ETC Securities (XETH) have a low TER of 0.35% and physically back cryptocurrencies with custodian services provided by Zodia Custody and Coinbase. These ETPs, part of a broader partnership between DWS and Galaxy, are available in euro and USD-hedged currencies, providing investors exposure to the two largest cryptocurrencies by market capitalization.

DWS Launches Bitcoin and Ethereum Exchange-Traded Products, Bolstering Crypto Market Accessibility

Deutsche Asset Management (DWS) has made a significant foray into the cryptocurrency market, launching two exchange-traded products (ETPs) that track the value of Bitcoin and Ethereum. This move marks a pivotal moment for the institutional adoption of digital assets, providing investors with a convenient and regulated way to gain exposure to the rapidly evolving cryptocurrency ecosystem.

The Xtrackers Galaxy Physical Bitcoin ETC Securities (XXBT) and Xtrackers Galaxy Physical Ethereum ETC Securities (XETH) are now available for trading on Deutsche Boerse. These ETPs offer a low expense ratio of 0.35%, making them highly competitive in the rapidly expanding European crypto ETP market. The products provide investors with exposure to Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, which currently exceed a combined value of $1.7 trillion.

The ETPs are physically backed, meaning they are backed by actual Bitcoin and Ethereum held in secure custody. DWS has partnered with leading cryptocurrency custodians Zodia Custody and Coinbase to provide robust security for its digital asset holdings. This ensures that investors can gain access to digital assets without the complexities and risks associated with direct ownership.

The ETPs are denominated in both Euro and US dollar-hedged currencies, allowing investors to tailor their investments based on their specific risk tolerance and currency preferences. State Street acts as the issuing, paying, and administration agent for the ETPs, while MSCI serves as the provider of reference prices for Bitcoin and Ethereum.

The launch of these ETPs aligns with DWS's ongoing commitment to innovation and meeting the evolving needs of investors. In recent years, the company has forged strategic partnerships with leading crypto players such as Galaxy and Flow Traders to develop a comprehensive suite of ETPs and digital asset solutions.

Manfred Bauer, Global Head of Product at DWS, stated, "Since the inception of Bitcoin in 2009, digital assets have evolved from a niche technology to a globally recognized asset class. Bitcoin and Ethereum alone now account for a significant portion of the market with a combined market capitalization exceeding $1.7 trillion. It's no longer possible for investors and asset managers to overlook these assets."

The launch of the Xtrackers Galaxy Physical Bitcoin and Ethereum ETC Securities is a testament to the growing institutional demand for cryptocurrencies. As the industry matures and regulatory frameworks evolve, DWS is well-positioned to continue playing a leading role in providing investors with access to the transformative potential of digital assets.