Key Points:
- Deutsche Digital Assets has introduced the Bitcoin Macro ETP, which is now listed on Euronext Paris and Xetra with a 2.00% expense ratio.
- The Deutsche Bitcoin ETP adjusts its exposure between Bitcoin and USD Coin based on macroeconomic conditions.
Deutsche Digital Assets, a well-recognized German crypto asset manager, has unveiled its new Bitcoin Exchange-Traded Product that dynamically changes with macroeconomic conditions.
Read more: Deutsche Boerse Digital Exchange Is Now Launched To Support Institutional Clients
Deutsche Bitcoin ETP Launched on Euronext Paris and Xetra
The Deutsche Digital Assets Bitcoin Macro ETP, or BMAC, has been launched on both Euronext Paris and Xetra, charging an expense ratio of 2.00%.
What really differentiates the Deutsche Bitcoin ETP is that it’s fully collateralized 100% through a diversified set of cryptocurrencies defined by the Compass FT DDA Bitcoin Macro Allocation Index, while the collateral is carefully managed through institutional-grade custody solutions at Coinbase Custody.
Dominik Poiger, chief product officer at Deutsche Digital Assets, also commented on the importance of such a launch. In his view, the ETP listing on Euronext Paris gives French investors an efficient and cost-effective channel to invest in Bitcoin. Poiger stated that Deutsche Bitcoin ETP is not only leveraged to Bitcoin itself but purportedly mitigates some of the risks emanating from adverse macroeconomic conditions.
Economic Signal-Based Strategic Allocation between Bitcoin and USD Coin
The BMAC tracks the Compass FT DDA Bitcoin Macro Allocation Index, which uses a quantitative model that bases changes in its investment strategy on four critical macroeconomic factors.
The model provides each of those factors with a momentum score to develop sub-signals, which in turn provide one overriding investment approach. The final investment signal dictates how much to allocate between Bitcoin and USD Coin, a stablecoin backed by dollar-denominated assets held in regulated financial institutions.
Under favourable macroeconomic conditions, Deutsche Bitcoin ETP increases Bitcoin exposure to favourable conditions of an upward trend in the prices of cryptocurrencies, capturing high returns. In this case, upon risk-off, the Deutsche Bitcoin ETP shifts into USD Coin as a means of capital preservation.
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