DWS Breaks New Ground in Germany with Launch of Physical Bitcoin ETCs

DWS, an asset supervisor with over $900 billion in assets under management, has launched new Xtrackers Exchange-Traded Commodities (ETCs) in collaboration with Galaxy Digital Holdings Ltd., providing investors easy access to bitcoin exposure in Germany. The Xtrackers Galaxy Physical Bitcoin ETC is listed on Deutsche Börse, allowing investors to participate directly in the Bitcoin market with the security and transparency of exchange-traded products.

DWS Launches Physical Bitcoin Exchange-Traded Commodities in Germany, Granting Investors Unprecedented Access

Frankfurt, Germany - April 4, 2024 - DWS, a renowned asset manager with over $900 billion in assets under management, has introduced the launch of its new Xtrackers Exchange-Traded Commodities (ETCs) in collaboration with Galaxy Digital Holdings Ltd. This groundbreaking initiative marks a significant milestone in the European financial landscape, offering investors seamless access to bitcoin (BTC) exposure in Germany for the first time.

"Since the inception of the first Bitcoin transaction in 2009, digital assets have evolved from a niche technological innovation to a globally recognized asset class," stated Manfred Bauer, Global Head of DWS' Product Division and Executive Board Member of DWS Group. "With a combined market capitalization exceeding USD 1.7 trillion, Bitcoin and Ethereum alone are now too substantial for investors and asset managers to ignore."

The Xtrackers Galaxy Physical Bitcoin ETC is now listed on Deutsche Börse, empowering investors to participate directly in the Bitcoin market with the security and transparency of an exchange-traded product. These ETCs are physically backed by BTC, ensuring that investors have direct exposure to the price movements of Bitcoin.

DWS has strategically partnered with Galaxy to accelerate Bitcoin adoption in Europe, leveraging Galaxy's expertise in digital asset services. "We are thrilled to collaborate with Xtrackers to provide investors with institutional-grade access to digital assets and guide them with our deep digital asset capabilities," commented Steve Kurz, Global Head of Asset Management at Galaxy.

State Street will serve as the Issuing and Paying Agent and Administration Agent for these ETCs, while MSCI will provide reference rates for Bitcoin, according to the official announcement. The ETCs are 1:1 physically backed and utilize cryptocurrency custodians Zodia Custody and Coinbase for secure storage in offline custody accounts. The ETCs also boast a competitive annual management fee of 0.35%.

"The launch of these ETCs is a testament to the growing institutional demand for digital assets," added Bauer. "DWS is committed to providing investors with innovative and accessible solutions to meet their evolving investment needs."

The introduction of physically-backed Bitcoin ETCs in Germany removes the technical barriers to digital asset investing. By eliminating the need for investors to establish digital wallets or navigate complex cryptocurrency exchanges, these ETCs make it easier for a wider range of investors to gain exposure to Bitcoin.

The Xtrackers Galaxy Physical Bitcoin ETCs offer investors a convenient and secure way to participate in the burgeoning digital asset market. With the backing of renowned institutions like DWS and Galaxy, these ETCs are positioned to become a cornerstone of the rapidly evolving European digital asset landscape.