Deutsche Digital Assets (DDA), a prominent German crypto and digital asset firm, has officially listed its Bitcoin Macro exchange-traded product (ETP) on the Deutsche Börse Xetra platform. Trading under the ticker symbol “BMAC,” this ETP adjusts its Bitcoin exposure based on macroeconomic factors and carries a total expense ratio of 2.00%. The DDA Bitcoin Macro ETP is supported by a basket of crypto assets held in an institutional-grade custody solution provided by Coinbase Custody.
Leveraging Market Volatility
The Bitcoin Macro ETP is designed to offer systematic exposure to Bitcoin (BTC) and USD Coin (USDC), optimizing Bitcoin exposure through key macroeconomic factors to enhance long-term risk management. Marc des Ligneris, who oversees quantitative strategies at DDA, highlighted the ETP’s goal to address the volatility and drawdowns that often deter retail and institutional investors from cryptocurrencies. He emphasized that the ETP reduces its exposure when adverse macroeconomic conditions negatively impact Bitcoin prices.
Growth in Crypto ETFs and ETPs
According to ETFGI, an independent research firm, global crypto exchange-traded funds (ETFs) and ETPs saw inflows of $2.2 billion in May, bringing the year-to-date net inflows to $44.50 billion. The number of listed crypto ETFs and ETPs has been steadily increasing, with 208 products, 551 listings, and assets totaling $82.27 billion from 47 providers across 20 exchanges in 16 countries as of June.
Rising Demand and Challenges
Despite the increasing demand for crypto ETPs, many institutions find it challenging to buy and stake crypto directly. This demand has led to numerous new listings, such as Figment Europe Ltd and Apex Group’s recent launch of two crypto ETPs on the SIX Swiss Exchange. However, the crypto market’s volatility has also resulted in the closure of several ETPs, such as the delisting of 21Shares’ Terra ETP and the termination of five other crypto ETPs in March 2023 due to low investor demand.
European Market Leadership
The European market continues to lead the way in cryptocurrency ETPs, with numerous successful listings providing investors with exposure to Bitcoin and Ethereum. Major providers in Europe include CoinShares, 21Shares, WisdomTree, ETC Group, Valour, and Fidelity. The recent approval of nearly a dozen spot Bitcoin ETFs by the U.S. Securities Exchange Commission (SEC) has further fueled a bull market and trading frenzy, reflecting the growing global interest in crypto ETPs.
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