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  • DWS collaborates with Galaxy Digital to launch cost-efficient Exchange Traded Commodities (ETCs) for Bitcoin and Ethereum, providing seamless integration into investment portfolios.
  • The new ETCs, listed on the Deutsche Börse, are physically backed and stored in secure, offline ‘Cold Storage,’ offering investors a transparent and liquid investment option in the digital asset space.

In a groundbreaking move that signals the increasing acceptance of cryptocurrencies as a legitimate asset class, DWS, Deutsche Bank’s investment arm, has partnered with Galaxy Digital, a leader in digital assets and blockchain technology. This strategic alliance has given rise to the introduction of two new Exchange Traded Commodities (ETCs) focused on Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. This initiative marks a significant milestone in bridging the gap between traditional financial markets and the burgeoning world of digital assets.

Innovative Access to Leading Digital Assets

The inception of Xtrackers Galaxy Physical Bitcoin ETCs and Xtrackers Galaxy Physical Ethereum ETCs offers investors an unprecedented opportunity to participate in the price movements of these digital giants. Listed on the Deutsche Börse, these ETCs are designed to provide investors with a transparent, liquid, and cost-efficient means to incorporate Bitcoin and Ethereum into their investment portfolios.

Since the first Bitcoin transaction in 2009, digital assets have transformed from a niche technological innovation to a globally recognized investment category. With a combined market capitalization exceeding $1.7 trillion, the significance of Bitcoin and Ethereum can no longer be overlooked 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 Synergy of Tradition and Innovation

The newly launched Xtrackers Digital Asset ETCs embody a fusion of traditional financial mechanisms and innovative digital asset services. State Street plays a crucial role as the issuing, paying, and administration agent, while MSCI provides the reference prices for Bitcoin and Ethereum. These ETCs are physically backed, utilizing cryptocurrency depots Zodia and Coinbase for secure storage in segregated offline vaults, known as ‘Cold Storage.’ This method ensures that cryptocurrency keys are stored away from online threats, enhancing the security of investors’ assets.

Moreover, the annual product fee for both the Xtrackers Galaxy Physical Bitcoin ETC Securities and the Xtrackers Galaxy Physical Ethereum ETC Securities is set at a cost-efficient 0.35 percent. This pricing strategy reflects DWS’s commitment to providing investors with an affordable entry point into the dynamic and potentially lucrative world of digital assets.

The collaboration between DWS and Galaxy Digital, and the launch of these innovative ETCs, underscore the growing convergence of traditional finance and digital currencies. By offering a secure, transparent, and liquid investment vehicle for Bitcoin and Ethereum, DWS and Galaxy are paving the way for broader acceptance and integration of cryptocurrencies into mainstream investment strategies.

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