Deutsche Digital Assets (DDA) has launched its first physically backed cryptocurrency exchange-traded product (ETP) on the Frankfurt-based German exchange, Xetra. The ETP will track the performance of Bitcoin (BTC) and Ethereum (ETH), two of the most widely traded cryptocurrencies in the world. The move marks a significant milestone for the German-based crypto investment firm, which aims to provide investors with a secure and convenient way to invest in digital assets.
The DDA physically backed crypto ETP will provide investors with a secure and transparent way to invest in cryptocurrencies. Unlike other crypto investment vehicles such as futures contracts, options, and contracts for difference (CFDs), the DDA ETP will hold the actual physical cryptocurrencies. This means that investors holding the crypto ETP will have ownership of the underlying assets, and their value will be directly linked to the performance of the cryptocurrencies.
The demand for cryptocurrency investments has surged in recent years, with more and more investors looking for alternative investments to traditional asset classes such as stocks, bonds, and real estate. The global cryptocurrency market has grown from around $20 billion in 2016 to over $1.5 trillion in 2021. Despite the growth potential of the crypto market, investors have been hesitant to invest in digital assets due to the lack of regulation, security, and transparency.
The DDA ETP aims to address these concerns by providing investors with a regulated, secure, and transparent way to invest in cryptocurrencies. By holding the actual physical cryptocurrencies, investors can be assured that their investments are safe from hacks, security breaches, and other digital vulnerabilities. The DDA ETP will also be subject to strict regulatory oversight and compliance, ensuring that investors are protected and their investments are transparent.
The launch of the DDA ETP is a significant development for the cryptocurrency market in Germany and Europe. The crypto investment space is still relatively new and unexplored, but the launch of the DDA ETP could help to accelerate its growth and legitimization. The product is expected to appeal to institutional investors who have been waiting for a regulated way to invest in digital assets, as well as retail investors who are looking for a convenient and secure way to gain exposure to the crypto market.
According to Michael Kott, the Managing Director of Asset Management at DDA, the launch of the ETP is the first step in the company’s mission to bridge the gap between traditional finance and the crypto market. He said, “We are excited to be launching our first physically-backed ETP on Xetra, the leading German exchange. This is a major milestone for us, and we are proud to be at the forefront of innovation in the crypto investment space. Our goal is to provide investors with a regulated, secure, and transparent way to invest in digital assets, bridging the gap between traditional finance and the crypto market.”
The DDA ETP is part of a growing trend of physical cryptocurrency products launched in response to investor demand for regulated and secure crypto investment products. Other crypto investment firms such as CoinShares and 21Shares have also launched physically backed crypto ETPs in recent months. These companies have seen a surge in demand for their products, as investors look for regulated and secure ways to gain exposure to the crypto market.
The launch of the DDA ETP is just the beginning for the German-based crypto investment firm. The company is currently working on developing other crypto investment products, including actively managed crypto funds and crypto index funds. These products will provide investors with a diversified and professionally managed way to invest in digital assets.
In conclusion, the launch of the DDA physically backed crypto ETP is a significant milestone for the cryptocurrency market in Germany and Europe. The ETP provides investors with a regulated, secure, and transparent way to invest in Bitcoin and Ethereum, two of the most widely traded cryptocurrencies in the world. The product is expected to appeal to both institutional and retail investors, and is part of a growing trend of regulated and secure crypto investment products. The launch of the DDA ETP could help to accelerate the legitimization and mainstream adoption of the crypto market, and we can expect to see more crypto investment products launched in response to investor demand in the coming months and years.
Deutsche Digital Assets (DDA) recently launched its first multi-asset physically-backed crypto exchange-traded product (ETP). The DDA Crypto Select 10 ETP trades by ticker symbol SLCT and will list on Deutsche Börse Xetra in the coming weeks. The product tracks MarketVector’s market-cap weighted crypto index, which was released on May 15, 2023.
The ETP’s assets will be held in Aplo’s institutional-grade custody solution. Bitcoin represents 61.99% of the fund, Ethereum represents 26.48%, Binance Coin is 5.84% and Cardano is 1.5%, while Polygon, Solana, TRON, Litecoin and Polkadot together make up fewer than 1%. Additionally, holdings will be rebalanced quarterly to reflect the market, with a total expense ratio of 1.69%.
DDA’s Chief Product Officer, Dominik Poiger, said the company chose to use a market-cap weighted index for its product to give investors “true” exposure to the crypto market. By contrast, other ETPs choose to cap tokens at a certain percentage to provide more diversification. For example, Virtune’s Crypto Top 10 Index caps bitcoin and ether at 40% respectively. The MSCI Digital Assets Select 20 ETP uses an index that maintains a cap at 30% for any one asset.
Launched on the heels of its recent rebrand from Iconic in November 2022, the DDA Crypto Select 10 ETP enjoyed participation from big names such as Jane Street, Flow Traders, DRW Europe, Bluefin Europe and Goldenberg Hehmeyer.
Investors and crypto enthusiasts interested in the DDA Crypto Select 10 ETP can stay up-to-date with Blockworks, a media and information platform. Blockworks offers a newsletter that delivers the day’s top crypto news and insights via email every evening. Additionally, those looking for alpha can sign up for the Blockworks Research’s Daily Debrief, which offers degen trade ideas, governance updates, token performance, can’t-miss tweets and much more.
For those who can’t wait, joining Blockworks on Telegram and following them on Google News are the fastest way to get the latest news. The DDA Crypto Select 10 ETP is expected to generate considerable interest from investors worldwide in the coming weeks.