ETC Group is set to launch the first crypto exchange-traded product (ETP) that tracks an MSCI index.
The ETC Group MSCI Digital Assets Select 20 ETP will list on the Deutsche Boerse in April.
Tracking the MSCI Global Digital Assets Select Top 20 Capped index, the ETP will offer exposure to the top 20 digital assets including bitcoin and ethereum ranked in order of market cap.
Each cryptocurrency included in the index is capped at 30% while stablecoins, privacy tokens and meme coins are excluded from the universe.
The ETP is physically backed with each coin deposited in cold storage custody.
Bradley Duke, founder and co-CEO, said: “This product signals the evolution of ETC Group’s product offering from single asset access products toward products that provide investment management solutions.”
Stephane Mattatia, head of thematic indices at MSCI, added: “The digital assets ecosystem is evolving rapidly and investor demand for access to this new asset class is growing.
“Our indices are developed with a systematic and process-oriented approach to help global investors gain transparency into this disruptive trend and enable them to make better investment decisions.”
Cryptocurrencies have made a strong start to 2023 with bitcoin up 64% to $27,277, as at 28 March.
Last December, ETC Group shut four crypto ETPs amid low demand for individual small-cap coins.