Deutsche Digital Assets, a well-recognized German crypto asset manager, has unveiled its new Bitcoin Exchange-Traded Product (ETP) that dynamically changes with macroeconomic conditions.
Launch of the New Bitcoin ETP
The new Bitcoin Macro ETP has been launched on Euronext Paris and Xetra platforms, with a 2.00% expense ratio.
Features of the Product
The Deutsche Bitcoin ETP is fully collateralized through a diversified set of cryptocurrencies defined by the Compass FT DDA Bitcoin Macro Allocation Index. The collateral is managed using institutional-grade custody solutions from Coinbase Custody. According to Dominik Poiger, Chief Product Officer at Deutsche Digital Assets, the ETP listing on Euronext Paris provides French investors with an efficient and cost-effective channel to invest in Bitcoin. Poiger noted that the Deutsche Bitcoin ETP is not only leveraged to Bitcoin but allegedly mitigates some risks stemming from adverse macroeconomic conditions.
Strategic Asset Allocation
The BMAC tracks the Compass FT DDA Bitcoin Macro Allocation Index, which uses a quantitative model based on four critical macroeconomic factors. The model provides each of these factors with a momentum score to develop sub-signals, which collectively form the overriding investment approach. The final investment signal dictates how much to allocate between Bitcoin and USD Coin, a stablecoin backed by dollar-denominated assets held in regulated financial institutions. Under favorable macroeconomic conditions, the Deutsche Bitcoin ETP increases Bitcoin exposure to capture high returns. When conditions are unfavorable, the product shifts into USD Coin for capital preservation.
The launch of the new Bitcoin ETP by Deutsche Digital Assets on Euronext Paris and Xetra platforms marks a significant step in the development of cryptocurrency-related investment tools. The new product offers investors the opportunity for diversification and strategic asset allocation in a changing economic climate.
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