Deutsche Digital Assets, a prominent German firm in the cryptocurrency and digital asset sector, has announced the introduction of the Bitcoin Macro exchange-traded product (ETP) on the esteemed Deutsche Börse Xetra trading platform. This innovative ETP, which operates under the ticker “BMAC,” dynamically adjusts its Bitcoin holdings based on overarching economic indicators and maintains a total expense ratio of 2.00%.
The “DDA Bitcoin Macro ETP” is supported by a diversified portfolio of cryptocurrencies securely stored through Coinbase Custody’s institutional-grade custodial services.
**Embracing Market Volatility**
DDA’s ETP strategically offers exposure to both BTC and USDC, leveraging pivotal macroeconomic elements to fine-tune its Bitcoin allocation, thereby bolstering its approach to long-term risk mitigation. Marc des Ligneris, the head of quantitative strategies at DDA, highlighted the common apprehension surrounding the volatility and downturns of cryptocurrency investments. He elaborated on DDA’s initiative to introduce smart beta strategies that allow investors to engage with cryptocurrencies while concurrently managing risk more effectively. The inaugural strategy launched by DDA scales back its Bitcoin investment when significant economic factors adversely impact Bitcoin’s value.
**Global Trends in Crypto Funds**
May witnessed a substantial influx of $2.2 billion into crypto ETFs and ETPs worldwide, as reported by ETFGI, an autonomous research entity. This surge has propelled the cumulative net inflows for the year to an impressive $44.50 billion.
**Expansion of Crypto ETFs and ETPs**
The landscape of global Crypto ETFs and ETPs is experiencing a steady growth. As per ETFGI’s June report, there were 208 distinct products, encompassing 551 listings, managed by 47 providers across 20 exchanges in 16 countries, amassing assets totaling $82.27 billion.
Earlier in the year, Figment Europe Ltd, a stalwart in institutional staking infrastructure, alongside Apex Group, introduced two crypto ETPs on the SIX Swiss Exchange.
Crypto product specialists have noted an unparalleled demand for crypto ETPs, despite the challenges institutions face in direct crypto acquisition and staking. The recent downturn in the crypto market led to the closure of several ETPs. Notably, in March 2023, 21Shares commenced the delisting of its Terra ETP and ceased operations of five other crypto ETPs due to dwindling investor interest, with these ETPs having been operational for less than a year.
**Europe’s Dominance in ETP Offerings**
The U.S. Securities Exchange Commission (SEC) earlier sanctioned nearly a dozen spot Bitcoin ETFs, sparking a bull market and heightened trading activity. Europe has been at the forefront, with numerous issuers successfully launching a variety of cryptocurrency ETPs over the years, providing investors with access to Bitcoin and Ethereum. Prominent European crypto ETP providers include CoinShares, 21Shares, WisdomTree, ETC Group, Valour, and Fidelity.
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