DWS has entered the crypto exchange-traded product (ETP) market with the launch of two strategies tracking bitcoin and ethereum.
The Xtrackers Galaxy Physical Bitcoin ETC Securities (XXBT) and the Xtrackers Galaxy Physical Ethereum ETC Securities (XETH) are listed on Deutsche Boerse with total expense ratios (TERs) of 0.35%.
The ETPs – which track the two largest cryptocurrencies by market cap – are available in euro and US dollar-hedged currencies.
State Street will act as the issuing and paying agent as well as the administration agent on the ETPs while MSCI will provide the bitcoin and ethereum reference prices.
XXBT and XETH are physically backed and use two cryptocurrency custodians Zodia Custody and Coinbase.
Manfred Bauer, global head of product at DWS, said: “Since the first bitcoin transaction in 2009, digital assets have developed from a niche technology innovation to a globally recognised asset class.
“With a combined market capitalisation of more than $1.7trn, bitcoin and ethereum alone are now too significant for investors and asset managers to ignore.”
The ETPs come in competitively priced, after a flurry of fee cuts on bitcoin ETPs across Europe following the launch of spot bitcoin ETFs in the US.
Fidelity, WisdomTree, CoinShares all cut headline TERs on their bitcoin ETPs to 0.35%. Invesco reduced its fee to 0.39%.
It comes after DWS entered a strategic partnership with Galaxy to launch a “comprehensive suite of ETPs” last April.
Last December, DWS partnered with Flow Traders and Galaxy to launch a euro-denominated stablecoin.
