DWS, the investment arm of Deutsche Bank, has joined forces with Galaxy Digital to introduce cost-effective Exchange Traded Commodities (ETCs) for Bitcoin and Ethereum. These new ETCs, which can be found on the Deutsche Börse, are backed by physical assets and stored securely in offline “Cold Storage,” offering investors a transparent and easily tradable option in the digital asset market.
This collaboration between DWS and Galaxy Digital marks a significant step forward in recognizing cryptocurrencies as a legitimate asset class. By creating two new ETCs focused on Bitcoin and Ethereum, the two largest cryptocurrencies in terms of market capitalization, the partnership aims to bridge the gap between traditional financial markets and the emerging world of digital assets.
The introduction of the 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 digital giants. These ETCs, listed on the Deutsche Börse, offer a transparent, liquid, and cost-effective way to incorporate Bitcoin and Ethereum into investment portfolios.
Since its inception in 2009, Bitcoin, along with Ethereum, has transformed from a niche technological innovation to a globally recognized investment category. With a combined market capitalization exceeding $1.7 trillion, these digital assets cannot be overlooked by investors and asset managers.
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. The ETCs are physically backed and stored in secure offline vaults, known as “Cold Storage,” using cryptocurrency depots Zodia and Coinbase. This ensures that cryptocurrency keys are protected from online threats, enhancing 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 set at an affordable 0.35 percent. This pricing strategy reflects DWS’s commitment to providing investors with an accessible entry point into the dynamic and potentially lucrative world of digital assets.
The collaboration between DWS and Galaxy Digital, along with the launch of these innovative ETCs, highlights the growing convergence of traditional finance and digital currencies. By offering a secure, transparent, and easily tradable investment vehicle for Bitcoin and Ethereum, DWS and Galaxy are paving the way for wider acceptance and integration of cryptocurrencies into mainstream investment strategies.