Key Takeaways
- • DWS launches two physically-backed ETCs tracking Bitcoin and Ethereum under its Xtrackers brand in partnership with Galaxy Digital Holdings, marking the German asset manager's entry into European cryptocurrency exchange-traded products.
- • The Xtrackers Galaxy Physical Bitcoin ETC and Xtrackers Galaxy Physical Ethereum ETC are registered with Deutsche Börse and offer 1:1 physical backing with cold custody from Zodia Custody and Coinbase for enhanced security.
- • State Street serves as Issuing and Paying Agent with administrative oversight, while MSCI provides reference pricing for both digital assets, ensuring institutional-grade operational standards and transparency.
- • The partnership positions DWS (€821 billion in assets under management) and Galaxy Digital as exclusive European cryptocurrency ETP partners, bridging traditional finance infrastructure with digital asset exposure.
Summary
DWS, the €821 billion German asset manager controlled by Deutsche Bank, has partnered with Galaxy Digital Holdings to launch two new Exchange Traded Commodities providing institutional investors with regulated access to Bitcoin and Ethereum exposure. The Xtrackers Galaxy Physical Bitcoin ETC and Xtrackers Galaxy Physical Ethereum ETC were registered with Deutsche Börse, leveraging DWS's established Xtrackers platform to deliver cryptocurrency products designed for European institutional and retail investors seeking cost-effective digital asset allocation.
The products are structured as physically-backed securities with 1:1 backing, meaning each ETC unit corresponds directly to holdings of the underlying cryptocurrency held in cold storage. Zodia Custody and Coinbase serve as custodians for the digital assets, with segregated offline custody accounts providing enhanced security protocols typical of institutional cryptocurrency infrastructure. State Street functions as the Issuing and Paying Agent and Administrative Agent, ensuring operational efficiency and regulatory compliance. MSCI provides reference pricing for both Bitcoin and Ethereum, establishing transparent valuation benchmarks for investors.
The strategic partnership underscores DWS's commitment to bridging traditional finance and digital assets in Europe, positioning Galaxy Digital as its exclusive cryptocurrency ETP partner on the continent. By combining DWS's distribution reach and regulatory expertise with Galaxy Digital's digital asset infrastructure and market knowledge, the collaboration aims to facilitate broader institutional adoption of cryptocurrency exposure through familiar, listed investment vehicles. The launch reflects ongoing consolidation in European cryptocurrency investment products, where traditional asset managers increasingly partner with specialized digital asset firms to meet growing investor demand for regulated crypto exposure.
The products are structured as physically-backed securities with 1:1 backing, meaning each ETC unit corresponds directly to holdings of the underlying cryptocurrency held in cold storage. Zodia Custody and Coinbase serve as custodians for the digital assets, with segregated offline custody accounts providing enhanced security protocols typical of institutional cryptocurrency infrastructure. State Street functions as the Issuing and Paying Agent and Administrative Agent, ensuring operational efficiency and regulatory compliance. MSCI provides reference pricing for both Bitcoin and Ethereum, establishing transparent valuation benchmarks for investors.
The strategic partnership underscores DWS's commitment to bridging traditional finance and digital assets in Europe, positioning Galaxy Digital as its exclusive cryptocurrency ETP partner on the continent. By combining DWS's distribution reach and regulatory expertise with Galaxy Digital's digital asset infrastructure and market knowledge, the collaboration aims to facilitate broader institutional adoption of cryptocurrency exposure through familiar, listed investment vehicles. The launch reflects ongoing consolidation in European cryptocurrency investment products, where traditional asset managers increasingly partner with specialized digital asset firms to meet growing investor demand for regulated crypto exposure.
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