DWS is poised to enter the crypto exchange-traded product (ETP) market after it agreeing a “strategic alliance” with digital asset manager Galaxy.
The German asset manager said it would develop a “comprehensive suite of ETPs”, exclusively alongside Galaxy, based on certain digital assets as well as exploring other digital asset solutions.
In February, DWS CEO Stefan Hoops (pictured) earmarked a potential move into the space following a sharp drop in digital asset prices which left “interesting opportunities” in the sector.
It would make DWS the latest ‘traditional’ asset manager, following WisdomTree, Fidelity and Invesco, to enter the crypto ETP market.
The partnership will look to combine DWS’s portfolio management, product structuring and distribution with Galaxy’s technical infrastructure and research capabilities in digital assets.
It will aim to give investors access to the roughly $1trn digital assets market via easy-to-access traditional brokerage accounts.
Fiona Basset, global head of systematic investment solutions at DWS, said: “As we see increasing client interest in digital assets and the need for secure access, our shared education-first approach will enable us to build thoughtfully constructed products.”
DWS added the move fulfils a key priority to develop a comprehensive digital solution in Europe.
Bloomberg previously reported the group had been in talks to acquire a minority stake in crypto ETP issuer Deutsche Digital Assets, formerly Iconic, and market maker Tradias.
In one of Hoop’s now infamous LinkedIn ramblings, he warned some crypto coins are “between worthless and fraudulent” adding asset managers should offer a conventional route to gain exposure to the asset class.