ETC Group to launch multi-crypto ETP

Apr 3rd, 2023 | By | Category: Alternatives / Multi-Asset

Crypto ETP specialist ETC Group is set to launch a new ETP on Deutsche Börse Xetra providing physically backed exposure to a basket of leading digital assets.

ETC Group to launch multi-crypto ETP

The ETP will provide broad, physically backed exposure to a basket of leading crypto assets.

Expected to list later in April, the ETC Group MSCI Digital Assets Select 20 ETP (DA20 GY) will be the first crypto-linked ETP to be based on an MSCI index.

MSCI, a leading benchmark provider for the ETF industry, unveiled its first suite of digital asset indices in November last year.

The ETP will track the MSCI Global Digital Assets Select Top 20 Capped Index which was developed by MSCI in collaboration with ETC Group.

The index consists of 20 of the largest crypto assets with stablecoins, privacy tokens, and meme-coins being ineligible for inclusion.

Constituents are weighted by total market capitalization subject to a single crypto asset cap of 30%. The index is rebalanced on a quarterly basis.

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

Similar to ETC Group’s existing single-asset crypto ETPs, the new product will be 100% physically backed and the underlying digital assets will be deposited in cold storage custody.

Tim Bevan, co-CEO and Founder of ETC Group, commented: “We are very proud to issue this new benchmark ETP. Tracking 20 constituents, this is the first genuine broad market index ETP in this exciting new asset class, providing the ideal asset allocation tool to investors.”

Bradley Duke, co-CEO and Founder of ETC Group, added: “This product signals the evolution of ETC Group’s product offering from single asset access products toward products that provide investment management solutions while retaining the same uncompromising standards in quality and investor security.”

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