Deutsche Digital Assets Lists ‘Bitcoin Macro ETP’ on Xetra Platform

German crypto firm Deutsche Digital Assets (DDA) has launched the Bitcoin Macro exchange-traded product (ETP) on the Deutsche Börse Xetra platform.

The Bitcoin Macro ETP, trading under the ticker “BMAC,” dynamically adjusts Bitcoin exposure based on macroeconomic indicators, featuring a total expense ratio of 2.00%. This innovative product is secured by a basket of cryptocurrencies held in Coinbase Custody’s institutional-grade solution.

Navigating Market Volatility

The ETP systematically balances exposure between Bitcoin (BTC) and USD Coin (USDC), leveraging macroeconomic insights to optimize Bitcoin holdings and enhance long-term risk management, according to DDA.

“The volatility and drawdowns in cryptocurrency investments deter many retail and institutional investors,” said Marc des Ligneris, head of quantitative strategies at DDA. “Our smart beta strategies, like the DDA Bitcoin Macro ETP, are designed to help investors gain crypto exposure while efficiently managing risk, especially during adverse macroeconomic conditions.”

Rising Interest in Crypto ETPs

According to ETFGI, an independent research firm, global inflows into crypto exchange-traded funds (ETFs) and ETPs reached $2.2 billion in May, bringing the year-to-date total to $44.50 billion. The increasing number of crypto ETFs and ETPs globally now includes 208 products, 551 listings, and $82.27 billion in assets across 47 providers on 20 exchanges in 16 countries as of June.

In Europe, Figment Europe Ltd and Apex Group launched two crypto ETPs on the SIX Swiss Exchange earlier this year, responding to high demand despite challenges in direct crypto purchases and staking.

European Market Leadership

Europe continues to lead in crypto ETP offerings, with successful listings from major providers like CoinShares, 21Shares, WisdomTree, ETC Group, Valour, and Fidelity. The U.S. market has also seen significant developments, with the SEC approving nearly a dozen spot Bitcoin ETFs, spurring a trading frenzy.

However, the market remains volatile, as illustrated by 21Shares delisting its Terra ETP and terminating five other crypto ETPs in March 2023 due to low investor demand.