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Deutsche Digital Assets Launches

Highlights:

  • Deutsche Digital Assets launched the worldโ€™s first smart Bitcoin ETP on Xetra.
  • The ETP adjusts Bitcoin exposure using key macroeconomic factors for optimized risk management.
  • Backed by institutional-grade custody, the ETP trades under the ticker ‘BMAC’ with a 2.00% expense ratio.

Deutsche Digital Assets (DDA), a prominent German digital asset management firm, has launched the worldโ€™s first smart Bitcoin Exchange Traded Product (ETP), the DDA Bitcoin Macro ETP. This innovative product, listed on the Deutsche Bรถrse Xetra platform, dynamically adjusts Bitcoin exposure based on prevailing macroeconomic conditions.

Details of the Bitcoin Macro ETP

The newly introduced ETP, trading under the ticker symbol “BMAC,” carries a total expense ratio of 2.00%. The product aims to mitigate Bitcoin’s volatility by adjusting its exposure according to key macroeconomic factors. It offers systematic exposure to both Bitcoin (BTC) and USD Coin (USDC). A diversified basket of cryptocurrencies fully backs it in an institutional-grade custody solution provided by Coinbase Custody International Ltd.

Marc des Ligneris, head of quantitative strategies at DDA, stated:

We want to offer a range of smart beta strategies, enabling them to gain exposure to cryptocurrencies while managing their risk more efficiently over the long term. The first one launched by DDA reduces its exposure when the biggest macroeconomic factors weigh negatively on the Bitcoin price.

Market Impact and Trends

The launch of this ETP comes when crypto exchange-traded funds (ETFs) and ETPs globally have seen significant inflows, with $2.2 billion recorded in May, according to ETFGI, an independent research firm. This brings the year-to-date net inflows to a total of $44.50 billion. The number of crypto ETFs and ETPs has risen to 208 products with 551 listings and $82.27 billion in assets. This growth highlights the increasing demand and acceptance of these investment vehicles.

Earlier this year, other providers like Figment Europe Ltd and Apex Group listed crypto ETPs on the SIX Swiss Exchange, showcasing the increasing interest in these products. Despite institutions’ challenges in buying and staking crypto directly, the demand for crypto ETPs remains robust. This trend is further evidenced by the U.S. Securities Exchange Commission (SEC) approving nearly a dozen spot Bitcoin ETFs, triggering a trading frenzy.

Secure and Regulated Investment

The DDA Bitcoin Macro ETP offers institutional and retail investors a secure and regulated way to invest in Bitcoin. It simplifies the investment process by eliminating the complexities of direct ownership.ย The ETP is 100% collateralized by cryptocurrencies held in โ€œcold storageโ€ by a regulated custodian, ensuring the safety and integrity of the investments.

Dominik Poiger, CFA, DDA’s Chief Product Officer, commented on the launch:

We are excited to announce the listing of DDA Bitcoin Macro ETP, our first smart beta crypto ETP. The Bitcoin Macro ETP represents a unique product that is not simply another cryptocurrency wrapped into an ETP but gives investors the upside of Bitcoin while trying to protect against adverse macro environments.

The DDA Bitcoin Macro ETP signifies a significant advancement in crypto investment, offering a dynamic and systematic approach to Bitcoin exposure. This ETP aims to optimize investment returns by leveraging macroeconomic indicators while effectively managing long-term risks. This launch shows cryptocurrencies’ growing integration and acceptance in traditional financial markets. It offers investors a reliable and innovative investment option.

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