DWS Partners with Galaxy Digital to Launch Bitcoin and Ethereum Trackers ETCs

German asset manager DWS has unveiled two new Exchange Traded Commodities (ETCs) under its Xtrackers range, in partnership with Galaxy Digital Holdings. These ETCs provide investors with accessible avenues to engage with the performance of Bitcoin and Ethereum, the two largest digital assets by market capitalization. The launch of these products reflects DWS's commitment to offering cost-effective and easily integrated solutions for investors seeking exposure to the digital asset market.

Enhanced Accessibility to Digital Assets

The newly introduced Xtrackers Galaxy Physical Bitcoin ETC and Xtrackers Galaxy Physical Ethereum ETC have been registered with Deutsche Börse, offering investors seamless access to the performance of Bitcoin and Ethereum within their investment portfolios. DWS aims to leverage its partnership with Galaxy Digital to bridge the gap between traditional financial systems and the burgeoning digital asset ecosystem, providing investors with liquidity and transparency typical of listed products.

Robust Infrastructure and Custodial Solutions

State Street will serve as the Issuing and Paying Agent and Administrative Agent for these ETCs, ensuring operational efficiency and adherence to regulatory standards. MSCI will provide bitcoin and ethereum reference prices, enhancing transparency and reliability for investors. Moreover, the ETCs are physically backed 1:1 and utilize the services of cryptocurrency custodians Zodia Custody and Coinbase, employing offline segregated ("cold") custody accounts for enhanced security measures.

Strategic Partnership with Galaxy Digital

The collaboration with Galaxy Digital signifies DWS's strategic initiative to drive the adoption of digital assets in Europe. Leveraging Galaxy's expertise in financial services and investment management within the digital asset and blockchain technology sectors, DWS aims to expand the accessibility and utilization of digital assets among investors. With Bitcoin and Ethereum collectively commanding a market capitalization exceeding $1.7 trillion, these assets have become increasingly integral for investors and asset managers globally.

Conclusion

Manfred Bauer, Global Head of DWS Products, underscores the growing significance of digital assets as a recognized asset class. He emphasizes the pivotal role that Bitcoin and Ethereum play in today's investment landscape, highlighting the need for investors and asset managers to embrace these assets. Through its collaboration with Galaxy Digital, DWS seeks to empower investors with enhanced opportunities to participate in the digital asset market, catering to the evolving needs of the investment community.