Two new Xtrackers ETCs have been introduced by DWS Group (DWS), a massive asset management company that oversees assets worth almost €900 billion. These are the Xtrackers Galaxy Physical Ethereum ETC securities and the Xtrackers Galaxy Physical Bitcoin ETC securities. As stated in a recent news release by DWS, these new ETCs were listed on Deutsche Börse today.
Similar to an exchange-traded note (ETN), an exchange-traded commodity (ETC) serves as a debt product but offers investors more safeguards. Collateral, limited recourse, and bankruptcy remote issuer are some of these safeguards. ETCs can track individual assets or more narrowly focused baskets of assets than ETNs can.
Manfred Bauer, a member of the DWS Group executive board and global head of the product division, claims that investors and financial institutions can no longer afford to ignore Bitcoin and Ethereum due to their increasing worth. DWS hopes to give investors direct access to Ethereum and Bitcoin with this launch.
"Since the initial Bitcoin transaction in 2009, digital assets have grown from a specialized area of technology to become a widely accepted asset class. Investors and asset managers can no longer afford to overlook Bitcoin and Ethereum alone, as their combined market capitalization exceeds USD 1.7 trillion," according to Bauer.
By utilizing their combined experience, DWS and Galaxy have formed a strategic alliance that aims to expedite the adoption of digital assets in Europe. By means of this partnership, Galaxy will provide DWS with the necessary resources and know-how to provide European investors with institutional-grade access to digital assets.
As mentioned in the press release, Coinbase and Zodia Custody offer separate offline storage solutions for each ETC, which guarantees the security of digital assets.
DWS anticipates that these ETCs will be an affordable choice for investors wishing to participate in the digital asset market, given their yearly product charge of only 0.35%. According to the company, its upcoming products would combine the perceived security of having an underlying physical asset with the simplicity of trading an ETP.
April 2024, Cryptoniteuae