DWS Launches Crypto-Tracking ETC for Mainstream Investors

DWS, a subsidiary of Deutsche Bank, has launched an Exchange Traded Commodity (ETC) that provides investors with access to cryptocurrencies. The 'Xtrackers Galaxy MSCI Physical Crypto Market ETC Securities' track the performance of the 'MSCI Crypto Market Select Index', which is made up of up to ten of the main cryptocurrencies.

The index has specific selection requirements and excludes 'meme coins' and 'stablecoins'. It also sets minimum weights for lower capitalization cryptocurrencies, ensuring that larger players are not dominated by smaller ones. The positions in the ETC are backed physically, with underlying crypto assets stored using cold storage solutions disconnected from the internet.

Xtrackers has partnered with Galaxy, an investment provider focused on digital assets, to operate these ETCs. This allows investors to gain exposure to cryptocurrencies without needing their own digital wallet or direct access to the blockchain.