DWS has joined forces with Galaxy Digital to introduce a cost-effective solution for Exchange Traded Commodities (ETCs) centered around Bitcoin and Ethereum, seamlessly integrating them into investment portfolios.
These new ETCs, now listed on the Deutsche Börse, are backed by physical assets and securely stored in offline ‘Cold Storage,’ providing investors with a transparent and liquid option within the digital asset realm.
In a pioneering move highlighting the growing acknowledgment of cryptocurrencies as a legitimate asset class, DWS, the investment arm of Deutsche Bank, has collaborated with Galaxy Digital, a frontrunner in digital assets and blockchain technology. This strategic partnership has led to the launch of two novel Exchange Traded Commodities (ETCs) concentrating on Bitcoin and Ethereum, the two leading cryptocurrencies by market capitalization. This endeavor signifies a significant step forward in bridging the gap between traditional financial markets and the burgeoning domain of digital assets.
Breaking: DWS, a $930 billion asset manager, teams up with Galaxy to unveil new Xtrackers ETCs, offering investors seamless access to #Bitcoin and #Ethereum markets in Germany!
Innovative Access to Premier Digital Assets
The introduction of Xtrackers Galaxy Physical Bitcoin ETCs and Xtrackers Galaxy Physical Ethereum ETCs presents investors with an unparalleled opportunity to engage with the price fluctuations of these digital giants. Listed on the Deutsche Börse, these ETCs are crafted to furnish investors with a transparent, liquid, and cost-effective avenue to integrate Bitcoin and Ethereum into their investment portfolios.
Since the genesis of the first Bitcoin transaction in 2009, digital assets have metamorphosed from a niche technological innovation into a globally acknowledged investment category. With a collective market capitalization exceeding $1.7 trillion, the significance of Bitcoin and Ethereum can no longer be disregarded by investors and asset managers.
“Digital assets have evolved from a technological innovation to a globally recognized class of investment. With a market cap surpassing $1.7 trillion, Bitcoin and Ethereum are too significant to ignore,” stated Manfred Bauer, Global Head of Product Division at DWS.
A Fusion of Tradition and Innovation
The newly introduced Xtrackers Digital Asset ETCs epitomize a blend of traditional financial mechanisms and pioneering digital asset services. State Street assumes a pivotal role as the issuing, paying, and administration agent, while MSCI furnishes the reference prices for Bitcoin and Ethereum. These ETCs are backed by physical assets, leveraging cryptocurrency depots Zodia and Coinbase for secure storage in segregated offline vaults, famously known as ‘Cold Storage.’ This approach ensures that cryptocurrency keys are shielded from online threats, bolstering the security of investors’ assets.
Furthermore, the annual product fee for both the Xtrackers Galaxy Physical Bitcoin ETC Securities and the Xtrackers Galaxy Physical Ethereum ETC Securities is fixed at a cost-efficient 0.35 percent. This pricing strategy underscores DWS’s dedication to offering investors an affordable entry point into the dynamic and potentially lucrative realm of digital assets.
The collaboration between DWS and Galaxy Digital, coupled with the introduction of these innovative ETCs, underscores the growing convergence of traditional finance and digital currencies. By furnishing a secure, transparent, and liquid investment avenue for Bitcoin and Ethereum, DWS and Galaxy are paving the way for broader acceptance and integration of cryptocurrencies into mainstream investment strategies.