DWS Debuts Innovative Bitcoin and Ethereum ETPs on Deutsche Boerse

WS has ventured into the realm of cryptocurrency exchange-traded products (ETPs), unveiling two innovative strategies that mirror the performance of the leading cryptocurrencies, bitcoin and ethereum.

These newly introduced Xtrackers Galaxy Bitcoin ETC Securities (XXBT) and Xtrackers Galaxy Ethereum ETC Securities (XETH) have made their debut on the Deutsche Boerse. They come with an attractive total expense ratio (TER) of 0.35%, making them a compelling choice for investors.

The ETPs offer exposure to bitcoin and ethereum, the cryptocurrencies with the largest market capitalizations, and are accessible in both euro and US dollar denominations. State Street has been appointed to oversee the issuance and payment processes, in addition to handling administrative duties for these ETPs. Meanwhile, MSCI is tasked with providing the reference prices for both bitcoin and ethereum.

Notably, both XXBT and XETH boast physical backing and rely on Zodia Custody and Coinbase, two reputable cryptocurrency custodians, to safeguard the assets.

Manfred Bauer, who leads product development at DWS, remarked on the evolution of digital assets from a niche innovation to a globally acknowledged asset category. He emphasized the significance of bitcoin and ethereum, which have amassed a combined market value exceeding $1.7 trillion, stating that these cryptocurrencies can no longer be overlooked by investors and asset management professionals.

In a competitive pricing landscape, these ETPs stand out, especially in the wake of recent fee reductions across bitcoin ETPs in Europe. This trend was triggered by the introduction of spot bitcoin ETFs in the United States, prompting major players like Fidelity, WisdomTree, and CoinShares to adjust their TERs to 0.35%. Invesco also made a slight adjustment, bringing its fee down to 0.39%.

This launch is part of DWS’s broader strategy, following its alliance with Galaxy last April to roll out an extensive range of ETPs. Additionally, in a move to expand its digital asset offerings, DWS joined forces with Flow Traders and Galaxy in December to introduce a euro-denominated stablecoin.

For those keen on staying abreast of the latest in technology and digital finance, these developments represent significant milestones in the integration of traditional and digital financial systems.