• The new digital asset ETCs are the result of a strategic partnership with Galaxy, a financial services and investment management specialist in the digital asset and blockchain technology sectors
• The products track 1:1 the performance of bitcoin and ethereum and are physically backed by their respective digital assets
• Cost-efficient product fee of 0.35 per cent p.a

DWS has launched two new Xtrackers ETCs in partnership with Galaxy Digital Holdings Ltd., giving investors access to bitcoin and ethereum. The new ETCs offer investors the opportunity to participate in the performance of the two biggest digital assets by market capitalization and to integrate them easily and cost-effectively into their portfolios. The Xtrackers Galaxy Physical Bitcoin ETC securities and the Xtrackers Galaxy Physical Ethereum ETC securities were listed on Deutsche Börse today.

“Since the first Bitcoin transaction in 2009, digital assets have developed from a niche technology innovation to a globally recognized asset class. With a combined market capitalization of more than USD 1.7 trillion^[1] , bitcoin and ethereum alone are now too significant for investors and asset managers to ignore,” says Manfred Bauer, Global Head of DWS’ Product Division and Member of the Executive Board at DWS Group.

DWS has entered into a strategic partnership with Galaxy to advance digital asset adoption in Europe through the partners’ combined expertise. Galaxy offers a broad range of digital asset products and services. “We are delighted to be working with Xtrackers to offer investors institutional-grade access to digital assets and to support them with our deep digital asset expertise,” says Steve Kurz, Global Head of Asset Management at Galaxy.

The new Xtrackers digital asset ETCs offer the typical liquidity and transparency of exchange-traded products and combine long-standing DWS partners from the traditional financial system with innovative digital asset-native service providers. State Street will act as Issuing and Paying Agent and Administration Agent, while MSCI will provide the Bitcoin and Ethereum reference prices. The products are 1:1 physically backed utilizing two cryptocurrency custodians, Zodia Custody and Coinbase, which store the cryptocurrencies in segregated offline (“cold”) storage^[2]“) custody accounts. The annual product fee is a cost-efficient 0.35 per cent.

Product Table

ETC-Name	Trading Currency	ISIN	Ticker	Product fee p.a.
Xtrackers Galaxy Physical Bitcoin ETC Securities	EUR	CH1315732250	XXBT	0.35%
Xtrackers Galaxy Physical Bitcoin ETC Securities	USD	CH1315732250	XXBU	0.35%
Xtrackers Galaxy Physical Ethereum ETC Securities	EUR	CH1315732268	XETH	0.35%
Xtrackers Galaxy Physical Ethereum ETC Securities	USD	CH1315732268	XETU	0.35%

Source: DWS

DWS Group selects Zodia Custody for European exchange-traded products

Bank-backed digital asset firm now provides custody services for the global asset managers’ Bitcoin and Ethereum ETPs, further cementing its role as a leading custodian for ETPs

Zodia Custody, a leading institution-first digital asset custodian whose shareholders include Standard Chartered, SBI Holdings and Northern Trust, has been selected by DWS Group, one of Europe’s largest asset managers, as a custodian for its crypto exchange-traded products (ETPs). 

Through the partnership, Zodia Custody provides its bank-grade custody services for DWS Group’s Xtrackers Galaxy Physical Bitcoin and Ethereum ETPs which were listed on Xetra today. Through the collaboration, investors in DWS Group’s ETPs are able to access a fully segregated and regulatory-compliant digital asset custodian solution. 

This includes Zodia Custody’s air-gapped cold storage security model, which is designed to maintain 24/7 availability of digital assets while removing them from threats, including exposure to unnecessary risk or potential loss.

“To deliver institutional-grade investment solutions, we need to work with high-quality providers. Through its discipline combined with a dedication to digital asset innovation, Zodia Custody is a proven fit for our Xtrackers crypto ETPs,” said Sam Sadayo, Director, Xtrackers Product & Platform Development, DWS Group. “With digital asset ETPs capturing the attention of the market, the combination of our education-first approach and partnering with institutional-grade service providers like Zodia provides a compelling offer. We look forward to working with Zodia Custody to further accelerate digital asset adoption.”

Alongside Zodia Custody, the ETPs leverage Coinbase’s custody services, with State Street also collaborating with the asset manager to provide issuing and paying agency as well as administration agency services. The products have been developed with Galaxy Digital, following a strategic partnership signed between the two in 2023, to advance European digital asset adoption. 

“This is exactly the type of collaboration we are built for — combining 160 years of banking experience with the latest in digital asset innovation,” said Julian Sawyer, CEO, Zodia Custody. “ETPs are the next evolution in institutional and investor participation, and as the leading custodian for TradFi institutions entering this space, we bring the rigour and regulatory compliance they require together with the very latest digital asset native technology. Together, we will provide effective and secure access to the ETP market, without compromise.”

Zodia Custody’s partnership with DWS Group follows several strategic moves from the digital asset custodian to shape the future of institutional participation. 

The custodian recently launched its Interchange Connect offering, a custody solutions network that integrates with Metaco, Fireblocks and Copper’s ClearLoop networks, making Zodia Custody the most connected custodian. The firm also released Zodia Custody Gateway — a curated, marketplace-like experience to help institutions discover select, vetted partners and services, designed to reduce the time and effort it takes for clients to select trusted providers and functionality. 

Source: Zodia Custody