Deutsche Digital Assets (DDA) has launched the first-ever Macro Bitcoin Exchange-Traded Product (ETP) on Xetra. This innovative ETP aims to dynamically optimize Bitcoin exposure based on macroeconomic factors, offering a novel approach to cryptocurrency investment.
Notably, the listing marks a significant milestone for investors looking to balance potential gains with macroeconomic risks.
Deutsche Digital Assets has introduced a groundbreaking investment tool with its DDA Bitcoin Macro ETP, now trading on Deutsche Börse’s Xetra. This ETP stands out by dynamically adjusting its Bitcoin exposure according to prevailing macroeconomic conditions.
Notably, this strategy aims to offer investors a unique blend of Bitcoin’s growth potential while managing exposure to adverse economic scenarios. According to the announcement, the Macro Bitcoin ETP is fully backed by a basket of cryptocurrencies, composed within the Compass FT DDA Bitcoin Macro Allocation Index (DDAMACRO), and held in secure custody with Coinbase Custody International Ltd.
Meanwhile, by incorporating both Bitcoin (BTC) and USD Coin (USDC), the ETP leverages key economic indicators to optimize exposure, enhancing long-term risk management.
Dominik Poiger, Chief Product Officer at DDA, highlighted the ETP’s innovative nature, stating, “Our Bitcoin Macro ETP is not just another cryptocurrency wrapped in a product; it offers investors the potential upside of Bitcoin while mitigating risks posed by unfavorable macroeconomic environments.” This smart beta approach allows for a more refined investment strategy compared to traditional crypto ETPs.
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Marc des Ligneris, responsible for quantitative strategies at DDA, said that this product addresses the concerns of volatility and drawdowns that deter many retail and institutional investors from cryptocurrencies. By dynamically reducing exposure in response to significant macroeconomic pressures, the ETP aims to manage investment risk more efficiently.
Notably, the DDA Bitcoin Macro ETP represents a significant advancement in cryptocurrency investment, providing a systematic and dynamic approach to Bitcoin exposure. Available on Xetra since July 3, 2024, the ETP offers a 2.00% total expense ratio and benefits from institutional-grade security, with assets held in “cold storage” to ensure maximum protection.
In addition, this launch also offers tax advantages for German private investors, who could benefit from capital gains tax exemptions after a holding period of 365 days. Notably, Germany is considered one of the top crypto-friendly countries, thanks to recent updates in its tax law regarding virtual currencies.
This provision could make the ETP particularly appealing to long-term investors seeking tax-efficient exposure to Bitcoin.
Meanwhile, the DDA Bitcoin Macro ETP aligns with a growing trend towards tokenized investment strategies that consider broader economic conditions. As the first of its kind, it sets a precedent for future products aiming to balance cryptocurrency exposure with macroeconomic insights.
Besides, this new product complements DDA’s existing offerings, including the DDA Physical Bitcoin ETP and the DDA Crypto Select 10 ETP, expanding options for investors across multiple European exchanges.
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