DWS Launches Bitcoin & Ethereum ETCs, Simplifying Crypto Investment
DWS Group, a leading German asset manager, has made waves in the cryptocurrency world by launching exchange-traded securities for Bitcoin and Ethereum. These products, traded under the Xtrackers brand, are physically-backed Exchange-Traded Commodities (ETCs) listed on the German Stock Exchange. Meanwhile, investors worldwide are gearing up to launch similar products on the Hong Kong and London stock markets in the near future.
DWS has partnered with Galaxy Digital Holdings to enter the crypto market, offering investors an easy way to gain exposure to Bitcoin and Ethereum. The ETCs track the performance of these cryptocurrencies on a 1:1 basis and are backed by the digital assets themselves. With a combined market capitalization of over 1.7 trillion US dollars, Bitcoin and Ethereum are two of the most popular and valuable cryptocurrencies, making these ETCs an attractive investment option for the stock market today.
For custody, DWS works with Zodia and Coinbase, ensuring the security of the digital assets that back the ETCs. The success of Bitcoin and Ethereum has led more asset managers to engage with cryptocurrencies, with investors worldwide working to launch exchange-traded products. In Europe, Bitcoin-ETCs and -ETNs are available but carry a risk of investor loss in the event of issuer insolvency. However, the ETCs launched by DWS are legally debt securities, offering investors a way to gain exposure to cryptocurrencies with a lower risk profile.
DWS's entry into the crypto market with its Xtrackers Bitcoin and Ethereum ETCs is a significant development, providing investors with a new way to access these popular cryptocurrencies. As the crypto market continues to grow and mature, more asset managers are expected to follow suit, offering investors a wider range of crypto-related investment products.
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