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Deutsche Digital Assets (DDA), a German crypto asset manager, has expanded its offerings by listing the DDA bitcoin Macro Exchange-Traded Product (ETP) on Euronext Paris. This is the second exchange where the Bitcoin Macro ETP is available, following its initial launch on Deutsche Börse's Xetra trading platform.
According to the company's announcement on Sept.17, the DDA Bitcoin Macro ETP (BMAC) is backed by a basket of cryptocurrencies tied to the Compass FT DDA Bitcoin Macro Allocation index (DDAMACRO). It is physically backed and held in secure cold storage by Coinbase Custody International Ltd., a regulated custodian. The ETP has a total expense ratio of 2%, providing an alternative option for investors looking for exposure to Bitcoin. Dominik Poiger, Chief Product Officer at DDA, commented on the expansion:“With the listing on Euronext Paris, investors from France can now invest even more economically and easily in the only macro ETP on Bitcoin.”
Poiger added,“The Bitcoin Macro ETP represents a unique product that is not simply another cryptocurrency wrapped into an ETP but gives investors exposure to Bitcoin while trying to protect against adverse macro environments.”
Model-Based Allocation Between Bitcoin and USD Coin
The DDA Bitcoin Macro ETP tracks the Compass FT DDA Bitcoin Macro Allocation Index, which uses a quantitative model to evaluate real-time macroeconomic factors. The index adjusts the allocation between Bitcoin and USD Coin (USDC), a stablecoin pegged to the U.S. dollar, based on market conditions.
The quantitative model evaluates four key macroeconomic indicators: global growth, U.S. monetary policy, the U.S. dollar, and risks associated with the Eurozone. Each of these factors is represented by a group of assets sensitive to the respective macroeconomic conditions.
According to DDA's model, more capital is allocated to Bitcoin when macroeconomic conditions are favorable. In contrast, during less favorable conditions, the strategy shifts toward USD Coin to protect investor capital. The momentum of each macro factor is calculated to generate signals that guide the investment strategy over a six-month window.
Europe's Established Crypto ETP Market
Europe has a long history of pioneering cryptocurrency ETPs, with major asset managers like 21Shares, WisdomTree, and Fidelity offering products that give investors access to digital assets like Bitcoin and Ethereum. DDA's ETP offerings are part of this growing market, which has attracted significant assets.
According to data from Trackinsight, the European crypto ETP market had approximately $12 billion in assets under management as of June 2023. Although North America remains the leading market for crypto ETPs, Europe has made substantial strides in providing diverse investment options for cryptocurrency enthusiasts across the region.
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