DWS launches new Xtrackers ETCs providing easy access to bitcoin and ethereum
- The new digital asset ETCs are the result of a strategic partnership with Galaxy, a financial services and investment management specialist in the digital asset and blockchain technology sectors
- The products track 1:1 the performance of bitcoin and ethereum and are physically backed by their respective digital assets
- Cost-efficient product fee of 0.35 per cent p.a
DWS has launched two new Xtrackers ETCs in partnership with Galaxy Digital Holdings Ltd. ("Galaxy"), giving investors access to bitcoin and ethereum. The new ETCs offer investors the opportunity to participate in the performance of the two biggest digital assets by market capitalization and to integrate them easily and cost-effectively into their portfolios. The Xtrackers Galaxy Physical Bitcoin ETC securities and the Xtrackers Galaxy Physical Ethereum ETC securities were listed on Deutsche Börse today.
"Since the first Bitcoin transaction in 2009, digital assets have developed from a niche technology innovation to a globally recognized asset class. With a combined market capitalization of more than USD 1.7 trillion[1] , bitcoin and ethereum alone are now too significant for investors and asset managers to ignore," says Manfred Bauer, Global Head of DWS’ Product Division and Member of the Executive Board at DWS Group.
DWS has entered into a strategic partnership with Galaxy to advance digital asset adoption in Europe through the partners’ combined expertise. Galaxy offers a broad range of digital asset products and services. "We are delighted to be working with Xtrackers to offer investors institutional-grade access to digital assets and to support them with our deep digital asset expertise," says Steve Kurz, Global Head of Asset Management at Galaxy.
The new Xtrackers digital asset ETCs offer the typical liquidity and transparency of exchange-traded products and combine long-standing DWS partners from the traditional financial system with innovative digital asset-native service providers. State Street will act as Issuing and Paying Agent and Administration Agent, while MSCI will provide the Bitcoin and Ethereum reference prices. The products are 1:1 physically backed utilizing two cryptocurrency custodians, Zodia Custody and Coinbase, which store the cryptocurrencies in segregated offline (“cold”) storage[2]“) custody accounts. The annual product fee is a cost-efficient 0.35 per cent.
Product Table
| ETC-Name | Trading Currency | ISIN | Ticker | Product fee p.a. |
|---|---|---|---|---|
| Xtrackers Galaxy Physical Bitcoin ETC Securities | EUR | CH1315732250 | XXBT | 0.35% |
| Xtrackers Galaxy Physical Bitcoin ETC Securities | USD | CH1315732250 | XXBU | 0.35% |
| Xtrackers Galaxy Physical Ethereum ETC Securities | EUR | CH1315732268 | XETH | 0.35% |
| Xtrackers Galaxy Physical Ethereum ETC Securities | USD | CH1315732268 | XETU | 0.35% |
About DWS Group
DWS Group (DWS) with EUR 896bn of assets under management (as of 31 December 2023) aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping to navigate the transition to a more sustainable future. With approximately 4,500 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.
About Galaxy
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy. We serve a diversified client base, including institutions, startups, and qualified individuals. Since 2018, Galaxy has been building a holistic financial platform spanning three complementary operating businesses: Global Markets, Asset Management, and Digital Infrastructure Solutions. The offerings include, amongst others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and hosting services, network validator services, and the development of enterprise custodial technology. The company is headquartered in New York City, with global offices across North America, Europe, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.
Key risks
This document is intended as marketing communication. Please read the legal documents before making a final investment decision.
The responsible legal entities offering DWS products or services are identified in the relevant documents. The information contained in this document does not constitute investment advice.
The Xtrackers Galaxy Physical Cryptocurrency ETC securities are issued by Xtrackers Digital Markets ETC AG, which is not part of DWS. However, the opinions and information included in this marketing communication are DWS’. An investment in Xtrackers Galaxy Physical Cryptocurrency ETC securities provides exposure to crypto asset(s). Such products are considered high risk investments. Crypto asset(s) are highly volatile when compared to fiat currencies (such as USD, EUR) and most (if not all) traditional asset classes. Xtrackers Galaxy Physical Cryptocurrency ETC securities involve multiple risks like general market risks or technical, legal, regulatory and blockchain risks. The value of the Xtrackers Galaxy Physical Cryptocurrency ETC securities depends on the underlying asset (crypto assets). Past performance is not a reliable indicator of future performance and depends on the performance of the underlying assets.
Xtrackers Galaxy Physical Cryptocurrency ETC securities are non-principal protected investments, therefore an investor’s capital will be at risk up to a total loss. Prices of cryptocurrencies are extremely volatile when compared most traditional asset classes. Cryptocurrencies face distinct market, technical, operational, legal, regulatory, cryptocurrency custody, hacking, fraud and blockchain risks. The value of the ETC securities depend on the underlying bitcoin/Ether price. It may go down as well as up and past performance is not a good indicator of future performance. Investments in cryptocurrency ETC securities will not accrue any interest and performance is subject to the deduction of the applicable fees.
Investing in ETC securities will not make an investor the owner of the Underlying. Pricing of the ETC securities on the secondary market may be at a significant discount or premium compared to the Value per ETC Security (intrinsic value) published by the Issuer.
Important Information
This marketing communication is intended for professional clients only.
Please read the legal documents before making a final investment decision.
DWS is the brand name under which DWS Group GmbH & Co. KGaA and its subsidiaries do business. Clients will be provided DWS products or services by one or more legal entities that will be identified to them in relevant documentation. The Xtrackers Galaxy Physical Cryptocurrency ETC Securities range is issued by Xtrackers Digital Markets ETC AG, which is not part of DWS. However, the opinions and information included in this marketing communication are DWS’s. This document is intended to be a marketing communication, not a financial analysis. Accordingly, it may not comply with legal obligations requiring the impartiality of financial analysis or prohibiting trading prior to the publication of a financial analysis. This document does not constitute investment advice nor an offer for sale nor a solicitation of an offer to buy the products. An investment in a Xtrackers Galaxy Physical Cryptocurrency ETC Securities range provides exposure to crypto asset(s). Such products are considered high risk investments. Crypto asset(s) are highly volatile when compared to fiat currencies (such as USD, EUR) and most (if not all) traditional asset classes. ETCs involve many risks like general market risks or technical, legal, regulatory and blockchain risks. The value of the ETC depends on the underlying asset (cryptocurrencies).
Complete information on the Xtrackers Galaxy Physical Cryptocurrency ETC Securities, including all risks and costs, can be found in the relevant base prospectus and key information document (KID). These constitute the only binding sales documents for the Xtrackers Galaxy Physical Cryptocurrency ETC Securities. Investors can obtain these documents [in German] from DWS International GmbH, Mainzer Landstraße 11-17, 60329 Frankfurt am Main, in printed form free of charge, or available in respective languages on the webpages: www.dws.de www.etf.dws.com Austria: https://funds.dws.com/at Belgium: https://funds.dws.com/be/NL France: https://funds.dws.com/fr-fr/ Luxembourg: www.dws.lu. Spain: www.dws.es Netherlands: www.dws.nl Ireland: https://funds.dws.com/ie, Sweden: https://funds.dws.com/se, Italy: https://funds.dws.com/it-itSwitzerland: https://funds.dws.com/en-ch/
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The Issuer of the product is Xtrackers Digital Markets ETC AG. The product is not a fund according to the Collective Investment Schemes Act and is therefore not subject to approval by FINMA.