German crypto and digital asset firm, Deutsche Digital Assets (DDA) has listed the Bitcoin Macro exchange-traded product (ETP) on the Deutsche Börse Xetra platform.
The ETP adjusts its Bitcoin exposure based on macroeconomic factors and is trading under the ticker symbol “BMAC” with a total expense ratio of 2.00%.
𝗗𝗲𝘂𝘁𝘀𝗰𝗵𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝘀𝘀𝗲𝘁𝘀 𝗟𝗶𝘀𝘁𝘀 𝗪𝗼𝗿𝗹𝗱'𝘀 𝗙𝗶𝗿𝘀𝘁 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗠𝗮𝗰𝗿𝗼 𝗘𝗧𝗣 𝗼𝗻 𝗫𝗲𝘁𝗿𝗮
We are thrilled to announce the launch of the revolutionary DDA Bitcoin Macro ETP – the world's first Bitcoin ETP dynamically optimizing… pic.twitter.com/Uzjjcgxru1
— Deutsche Digital Assets (@DDA_GmbH) July 3, 2024
The product dubbed the “DDA Bitcoin Macro ETP” is backed by a basket of crypto held in an institutional-grade custody solution with Coinbase Custody.
Taking Advantage of Volatility in the Market
The ETP provides a systematic exposure to BTC and USDC, and is “utilizing key macroeconomic factors to optimize its Bitcoin exposure and enhance long-term risk management,” said the firm.
“The volatility and drawdowns associated with investing in cryptocurrencies scare many retail and institutional investors,” said Marc des Ligneris, in charge of quantitative strategies at DDA.
“We want to offer a range of smart beta strategies enabling them to gain exposure to cryptocurrencies while managing their risk more efficiently over the long term. The first one launched by DDA reduces its exposure when the biggest macroeconomic factors weigh negatively on the Bitcoin price,” adds Ligneris.
Crypto exchange-traded funds (ETFs) and ETPs listed globally saw inflows of $2.2 billion during May, reports ETFGI, an independent research firm, reports crypto. This brings year-to-date net inflows to a total of $44.50 billion.
Issuers Launching Crypto ETFs, ETPs Rises
The number of Crypto ETFs and ETPs listed globally continues to rise. The sectors had 208 products, with 551 listings, and assets of $82.27 billion, from 47 providers listed on 20 exchanges in 16 countries in June, reports ETFGI.
Earlier this year, Figment Europe Ltd, a provider of institutional staking infrastructure, and Apex Group listed two crypto ETPs on the SIX Swiss Exchange.
According to crypto product providers, there is unprecedented demand for crypto ETPs and it remains a challenge for institutions to buy crypto and stake directly. During the most recent crypto bear market, many ETPs faced closure.
For example, in March 2023, ETP provider 21Shares started delisting its Terra ETP and terminated five other crypto ETPs due to low investor demand. The ETPs had only been open for less than a year.
European Market Leads the Way With ETPs
Earlier this year, the U.S. Securities Exchange Commission (SEC) approved almost a dozen spot Bitcoin ETFs which has in turn triggered a bull market and trading frenzy.
In Europe, many issuers have successfully listed numerous cryptocurrency ETPs over the years ago giving investors exposure to Bitcoin and Ethereum. Major crypto ETP providers in Europe include CoinShares, 21Shares, WisdomTree, ETC Group, Valour and Fidelity.
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