DWS Launches New Bitcoin ETC in Germany in Collaboration with Galaxy Digital Holdings
In a groundbreaking move, DWS, a leading asset manager with over $900 billion in assets under management, has teamed up with Galaxy Digital Holdings Ltd. to introduce new Xtrackers Exchange-Traded Commodities (ETC) in Germany. This collaboration aims to provide investors with easy access to bitcoin exposure in the country.
The Xtrackers Galaxy Physical Bitcoin ETC is now available on Deutsche Börse, enabling investors to directly participate in the Bitcoin market through exchange-traded products. These ETCs are backed by physical bitcoin, ensuring that investors have direct exposure to the price movements of the popular cryptocurrency.
Manfred Bauer, Global Head of DWS’ Product Division, emphasized the growing significance of digital assets in the global financial landscape. He stated, “Since the first Bitcoin transaction in 2009, digital assets have evolved from a niche technology innovation to a globally recognized asset class. With a combined market capitalization of more than USD 1.7 trillion, bitcoin and ethereum alone are now too significant for investors and asset managers to ignore.”
The partnership between DWS and Galaxy aims to promote Bitcoin adoption in Europe, leveraging Galaxy’s expertise in digital asset products and services. Steve Kurz, Global Head of Asset Management at Galaxy, expressed his excitement about the collaboration, saying, “We are delighted to be working with Xtrackers to offer investors institutional-grade access to digital assets and to support them with our deep digital asset expertise.”
State Street will serve as the Issuing and Paying Agent and Administration Agent for the ETCs, with MSCI providing reference prices for bitcoin. The ETCs are 1:1 physically backed and utilize cryptocurrency custodians Zodia Custody and Coinbase for secure storage in offline custody accounts. Additionally, the ETCs will have an annual product fee of 0.35%.
This move by DWS and Galaxy represents a significant step towards mainstream adoption of digital assets in the traditional financial sector, providing investors with a secure and transparent way to access the bitcoin market in Germany.
