Deutsche Digital Assets to launch multi-crypto ETP

May 24th, 2023 | By | Category: Alternatives / Multi-Asset

Deutsche Digital Assets is preparing to launch a new ETP in Germany that will deliver access to a basket of leading crypto assets.

Dominik Poiger, Chief Product Officer of Deutsche Digital Assets

Dominik Poiger, Chief Product Officer of Deutsche Digital Assets.

The DDA Crypto Select 10 ETP (SLCT GY) is expected to list on Deutsche Börse Xetra in euros in the coming weeks.

The ETP will track the MarketVector Digital Assets Max 10 VWAP Close Index which consists of the ten largest crypto assets weighted by market capitalization.

The index is uncapped, thereby maintaining a true reflection of the cryptocurrency market. As of 1 May, bitcoin and ether accounted for 62.5% and 26.3% of the index’s total weight. Rebalancing occurs on a quarterly basis.

The ETP will offer investors broad exposure to the crypto investment universe through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.

The product will be 100% physically backed with the underlying crypto holdings being deposited in institutional-grade cold storage with the custodian SheeldMarket SAS.

The ETP will also offer a yield enhancement through staking and lending of its underlying crypto assets – all staking and lending returns accrue to the NAV. Crypto assets that are staked or put on loan will not move from the custodian’s cold storage.

The ETP will come with an expense ratio of 1.69%.

Digital assets have proven to be a diversifier to traditional portfolios composed of traditional asset classes such as stocks and bonds. Investment into digital assets can have a positive impact on a portfolio’s returns, standard deviation, and Sharpe Ratio due to long-term correlation characteristics.

Dominik Poiger, Chief Product Officer of Deutsche Digital Assets, said: “We are excited to launch the DDA Crypto Select 10 ETP which we believe will offer significant value to our investors. We deliberately decided against a capping scheme as the uncapped nature of the DDA Crypto Select 10 ETP captures the true market performance.

“With the increasing interest in digital assets and the growing demand for crypto exchange-traded products, DDA is well-positioned to meet the needs of investors looking for a safe and regulated way to invest in crypto assets through trusted investment vehicles.”

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