DWS Launches New Bitcoin ETC 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) that offer investors easy access to bitcoin exposure in Germany.
The Xtrackers Galaxy Physical Bitcoin ETC is now available on Deutsche Börse, providing investors with a secure and transparent way to participate directly in the Bitcoin market. These ETCs are physically backed by BTC, ensuring that investors have direct exposure to the price movements of the popular cryptocurrency.
Manfred Bauer, Global Head of DWS’ Product Division, highlighted the growing importance of digital assets in the global financial landscape. “Since the first Bitcoin transaction in 2009, digital assets have evolved from a niche technology innovation to a globally recognized asset class,” Bauer said. “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.”
DWS has strategically partnered with Galaxy to drive Bitcoin adoption in Europe, leveraging Galaxy’s expertise in digital asset products and services. Steve Kurz, Global Head of Asset Management at Galaxy, expressed excitement about the collaboration. “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,” Kurz stated.
State Street will serve as the Issuing and Paying Agent and Administration Agent for these 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 feature an annual product fee of 0.35%.
This move by DWS and Galaxy marks a significant step towards mainstream adoption of digital assets in the traditional financial sector, providing investors with a convenient and secure way to access the growing cryptocurrency market.
