Deutsche Digital Assets (DDA), a prominent player in the German crypto and digital asset scene, has introduced the Bitcoin Macro exchange-traded product (ETP) on the Deutsche Börse Xetra platform. Known as “BMAC,” this ETP dynamically adjusts its exposure to Bitcoin based on macroeconomic indicators and carries a total expense ratio of 2.00%.
The “DDA Bitcoin Macro ETP” is secured by a diversified portfolio of cryptocurrencies held in institutional-grade custody provided by Coinbase Custody. This setup allows DDA to capitalize on market volatility while optimizing risk management through a strategic allocation that includes BTC and USDC.
Marc des Ligneris, overseeing quantitative strategies at DDA, emphasized the rationale behind the product: “The volatility and potential downturns associated with crypto investments can deter both retail and institutional investors. Our goal is to offer smart beta strategies that enable investors to participate in crypto markets while efficiently managing long-term risks. Our inaugural product reduces exposure during periods of significant negative macroeconomic influence on Bitcoin prices.”
According to ETFGI, a leading independent research firm, global inflows into crypto exchange-traded funds (ETFs) and ETPs totaled $2.2 billion in May alone, pushing year-to-date net inflows to $44.50 billion. The popularity of such instruments continues to rise globally, with 208 products across 20 exchanges in 16 countries, amounting to assets worth $82.27 billion.
In Europe, the trend of launching crypto ETPs remains robust, with entities like Figment Europe Ltd and Apex Group recently listing products on the SIX Swiss Exchange. This surge in offerings responds to escalating demand among institutional investors seeking exposure to cryptocurrencies without directly handling crypto assets or staking operations.
Meanwhile, the European market stands out for its progressive stance on crypto ETPs, contrasting with the U.S., where recent approvals of spot Bitcoin ETFs by the SEC triggered significant market enthusiasm. Key players in the European crypto ETP space include CoinShares, 21Shares, WisdomTree, ETC Group, Valour, and Fidelity, all pivotal in broadening investor access to major cryptocurrencies like Bitcoin and Ethereum.
As the landscape evolves, DDA’s introduction of the Bitcoin Macro ETP underscores a strategic move to cater to diverse investor needs amidst a rapidly expanding digital asset market.