Deutsche Digital Assets Launches Its First Physically Backed Crypto ETP on German Exchange

Deutsche Digital Assets launched a new physically-backed crypto ETP with big name participants including Jane Street, Flow Traders, DRW Europe, Bluefin Europe and Goldenberg Hehmeyer.

The DDA Crypto Select 10 ETP, trading by ticker symbol SLCT, is the company’s first multi asset tradeable product and will list on Deutsche Börse Xetra in the coming weeks, according to a company statement. It will track MarketVector’s market cap-weighted crypto index that was released on May 15, 2023.

The company also announced that its ETP’s assets will be held in Aplo’s institutional-grade custody solution.

Since bitcoin is the largest cryptocurrency by market cap, SLCT weights it at 61.99% of the fund. Ethereum represents 26.48%, Binance Coin is 5.84% and Cardano is 1.5%. The rest of the ETP is made up by Polygon, Solana, TRON, Litecoin and Polkadot at fewer than 1%.

According to the methodology for the ETP, the product’s holdings will be rebalanced quarterly to reflect the market and will have a total expense ratio of 1.69%

Dominik Poiger, Chief Product Officer of Deutsche Digital Assets, said the company chose to use a market-cap weighted index for its product to give investors “true” exposure to the crypto market.

“We deliberately decided against a capping scheme as the uncapped nature of the DDA Crypto Select 10 ETP captures the true market performance,” Poiger said.

Other ETPs choose to cap tokens at a certain percentage to provide more diversification, like Virtune’s Crypto Top 10 Index (VTOP10), which Blockworks previously reported limits bitcoin and ether at 40% respectively. The MSCI Digital Assets Select 20 ETP, which launched on April 24, also uses an index that maintains a cap at 30% for any one asset.

The news of the new ETP from Deutsche Digital Assets comes on the heels of its November 2022 rebrand from its previous name Iconic.

Blockworks reached out to Deutsche Digital Assets for comment and didn’t receive an immediate response.

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