It is a fact that the cryptocurrency industry’s interest in traditional financial products will increase in 2024. Spot Bitcoin $60,073 The success of ETFs has been the biggest contributor to this growth. While the US has seen significant developments in this area, Europe has also taken its progressive legislation a step further.
DDA Bitcoin Macro ETP Launched
The DDA Bitcoin Macro ETP, one of the most advanced and unique exchange-traded products to be traded on leading European markets, has been introduced. Managed by Deutsche Digital Assets, the product primarily tracks the price of Bitcoin, while also aiming to offset the risk factor with additional assets.
Dynamic Adjustment Based on Macroeconomic Factors
The DDA Bitcoin Macro ETP uses a portfolio based on the Bitcoin Macro Allocation Index. The index consists of USD Coin (USDC) and Bitcoin. In simpler terms, when economic conditions are tough, the portfolio is biased towards the US dollar and in bullish cycles, it is biased towards BTC.
“The DDA Bitcoin Macro ETP offers investors access to the world’s first Bitcoin ETP that dynamically adjusts Bitcoin investment based on macroeconomic factors,” Deutsche Digital Assets said.
Generating Returns from ETP Assets
The fund will trade on major European exchanges, including Euronext in Paris and Amsterdam, SIX Swiss Exchange and Deutsche Börse Xetra. Investors will pay a 2 percent annual management fee. While this fee may seem high compared to most spot ETFs in the sector at first glance, the DDA Bitcoin Macro ETP has a significant advantage.
Investors will be able to earn additional returns by staking ETP assets. Returns from staking transactions will be added to the fund’s net asset value (NAV) and reflected in the share price. This feature will provide investors with additional earning opportunities.
It is thought that funds like DDA BMAC can play an important role in increasing investors’ interest in the sector. In particular, managing volatility risk is seen as one of the obstacles to large institutions investing in cryptocurrencies.
The DDA Bitcoin Macro ETP from Deutsche Digital Assets offers an innovative option for those looking to invest in cryptocurrencies. Dynamically adjusting portfolio allocation according to macroeconomic conditions, this product aims to bring together risk management and return opportunities.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
