DWS and Galaxy Digital Join Forces to Introduce Cost-Effective ETCs for Bitcoin and Ethereum, Enabling Seamless Integration into Investment Portfolios
DWS, the investment arm of Deutsche Bank, has teamed up with Galaxy Digital, a leader in blockchain technology and digital assets, to launch two new Exchange Traded Commodities (ETCs) focused on Bitcoin and Ethereum. These ETCs, listed on the Deutsche Börse, offer investors a secure and transparent investment option in the digital asset space.
In a groundbreaking move that highlights the growing acceptance of cryptocurrencies as a legitimate asset class, DWS and Galaxy Digital have formed a strategic alliance to bridge the gap between traditional financial markets and the emerging world of digital assets.
The introduction of Xtrackers Galaxy Physical Bitcoin ETCs and Xtrackers Galaxy Physical Ethereum ETCs provides investors with an unprecedented opportunity to participate in the price movements of these leading digital assets. These ETCs are designed to be transparent, liquid, and cost-efficient, allowing investors to easily incorporate Bitcoin and Ethereum into their investment portfolios.
Bitcoin and Ethereum have evolved from niche technological innovations to globally recognized investment categories, with a combined market capitalization exceeding $1.7 trillion. It is clear that these digital giants cannot be ignored by investors and asset managers.
Manfred Bauer, Global Head of Product Division at DWS, stated, “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.”
The newly launched Xtrackers Digital Asset ETCs combine traditional financial mechanisms with innovative digital asset services. State Street acts as the issuing, paying, and administration agent, while MSCI provides the reference prices for Bitcoin and Ethereum. These ETCs are physically backed and stored in secure offline vaults, known as ‘Cold Storage,’ using cryptocurrency depots Zodia and Coinbase. This ensures that investors’ assets are protected from online threats.
Furthermore, 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 demonstrates DWS’s commitment to making digital assets accessible to investors at an affordable price.
The collaboration between DWS and Galaxy Digital, and the launch of these innovative ETCs, highlight the convergence of traditional finance and digital currencies. By providing a secure, transparent, and liquid investment vehicle for Bitcoin and Ethereum, DWS and Galaxy are paving the way for the wider acceptance and integration of cryptocurrencies into mainstream investment strategies.