DWS, the investment manager of Deutsche Bank, has put on the market the "Xtrackers Galaxy MSCI Physical Crypto Market ETC Securities," a commodity traded (ETC, for its initials in English) designed to give investors a way to access the universe of cryptocurrencies.
This new financial instrument follows the behavior of the "MSCI Crypto Market Select Index," an index made up of up to ten of the main cryptocurrencies that meet specific selection requirements, as the firm detailed in a statement.
The index's portfolio is reviewed quarterly and the positions that are part of the ETC are backed physically. Thus, the underlying crypto assets are stored using 'cold storage' solutions, that is, custody systems disconnected from the internet.
In addition, the index sets minimum weights of 0.5% or 1%, respectively, for lower capitalization cryptocurrencies or those recently added, and excludes both 'meme coins' --cryptocurrencies that mainly arose from the phenomenon of popularity on the internet-- and 'stablecoins'.
For the operation of these ETCs, Xtrackers relies on Galaxy, an investment provider focused on digital assets, so that investors can expose themselves to this market without needing to have their own digital wallet or direct access to the blockchain.