DDA Physical Bitcoin ETP
DDA Physical Bitcoin ETP (Ticker: XBTI) is an exchange traded product (ETP) that tracks the price of Bitcoin (BTC).
Product details
| Type: | Exchange Traded Note (100% collateralized |
| Exchanges | Deutsche Boerse Xetra, SIX Swiss Exchange, Euronext Paris and Amsterdam |
| Trading Currency | EUR, USD, CHF |
| Exchange Ticker | XBTI |
| ISIN | DE000A3GK2N1 |
| WKN | A3GK2N |
| VALOR | 110570684 |
| Bloomberg | XBTI GY |
Key facts
| As of Date | 31.10.2024 |
| Base Currency | USD |
| Inception Date | 15.02.2021 |
| Domicile | Germany |
| Net Asset Value (USD)** | 20.3M USD |
| Total Expense Ratio | 0.95% |
| Replication Method | Physically Allocated Bitcoin (100% collateralized) |
| Notes Outstanding** | 2,981,000 |
| UCITS Compliant | No |
| UCITS Eligible | Eligible* |
| Securities Lending | No |
| Legal Form | Debt Security (100% collateralized) |
| Issuer | DDA ETP GmbH |
| Administrator | State Street Bank International GmbH |
| Security Trustee | Griffin Trust AG |
| Custodians | Coinbase Germany GmbH |
| Registered for sale | Austria, Germany, the Netherlands, Norway, Sweden, Italy, France, Estonia, Poland, Slovakia, Spain, Finland, Greece, Portugal, Slovenia, the Czech Republic, Denmark, Austria, Belgium, Cyprus, Ireland, Switzerland, Liechtenstein, Luxembourg and Malta |
Product Description
DDA Physical Bitcoin ETP (Ticker: XBTI) is an exchange traded product (ETP) that tracks the price of Bitcoin (BTC). The ETP is 100% physically backed by BTC. Each ETP gives the holder a claim on a predefined amount of BTC (0.0001 BTC at inception).
- Physically backed by Bitcoin and stored in so called cold storage, BaFin-regulated and trusted crypto custodian with an additional 3rd Party insurance
- Competitive management fee of 0.95% p.a.
- Listed and traded on Deutsche Börse Xetra, SIX Swiss Exchange, Euronext Paris and Amsterdam
- No lending – Bitcoin held in custody and not lent out
Product Benefits
100% Physically Backed and Secured
DDA ETPs replicate the performance of the underlying index with competitive management fees and give the holder of the note a claim on the predefined amount of the asset.
Regulated and trusted Custody Solutions
Digital assets are conveniently stored at specialized custodians such as BaFin-regulated Coinbase Germany GmbH or French AFM-regulated Aplo. Investors do not require the technical expertise to manage several wallets and private keys.
Trades like an ETF on European Exchanges
The DDA ETPs trade like a stock or an ETF and are available on European stock exchanges, such as Deutsche Börse Xetra, Euronext Paris & Amsterdam, SIX Swiss Exchange and Börse Stuttgart.
Sustainable Investing in Bitcoin
Deutsche Digital Assets offsets the carbon emissions generated by its DDA Physical Bitcoin ETP through a comprehensive carbon offsetting program. The program funds impact-oriented projects that have been tested and certified by renowned climate and nature conservation groups.
Portfolio diversification with crypto investments
Digital assets have proven to be a diversifier to a portfolio composed of traditional asset classes, such as stocks and bonds. An investment into digital assets can have a positive impact on portfolio returns, the standard deviation and the portfolio Sharpe Ratio due to long-term correlation characteristics. Find out more about the impact of crypto allocations on different portfolio models on our research report here.
Tax free after one year holding period
DDA crypto ETPs are tax-free for German private investors after a one-year holding period.1
Pricing Information
Coin Entitlement (Bitcoin Factor): Each Note is backed by 0.0001 Bitcoin at launch.
NAV in USD: Bitcoin Entitlement (Bitcoin Factor) x Bitcoin price
Key Risks
Investors’ capital is at risk and investors may not get back the amount originally invested. The ETP is structured as a fully collateralized debt security (“Inhaberschuldverschreibung”), not as a fund. The ETP traded on exchanges are bought/sold at market prices which may be different to the net asset value of the ETP or Bitcoin.
Physical Delivery Option for Retail Investors
A Noteholder can only exercise its termination right through an Authorized Participant, if he qualifies in accordance with client acceptance policies of the respective Authorized Participant (which the Issuer has no influence over). The termination can be exercised through any Authorized Participant whether or not the Notes were acquired through the Authorized Participant receiving the notice or acquired through a secondary market. In such case, the Notes will be redeemed in BTC to the Digital Wallet of the Holder, unless a Holder is prevented from receiving BTC for legal or regulatory reasons (such as Undertakings for Collective Investment in Transferable Securities (UCITS) within the meaning of Article 1 of the Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009). In such cases the Holder, acting through an Authorized Participant, may demand redemption in USD and EUR in which case the BTC will be converted into USD or EUR in accordance with the relevant provisions of the Terms and Conditions on a date fixed for redemption. If you are interested in the physical delivery option, please reach out to: [email protected].
About the Issuer
DDA ETP GmbH is a wholly owned subsidiary of DDA Europe GmbH and the issuer of a physically backed Bitcoin Exchange Traded Product (“ETP”) (ISIN: DE000A3GK2N1; Ticker: XBTI). DDA Europe GmbH is the holding company of a series of subsidiaries that manage and issue crypto asset investment products. Collectively, DDA Europe GmbH and its subsidiaries are branded as “DDA”. DDA is the bridge to passive and actively managed exposure to crypto. DDA, via its subsidiaries, offers crypto asset ETPs, alpha-seeking strategies and investment advisory services for investors in a familiar and regulated manner.
Composition of the product
The underlying of the Notes is Bitcoin, commonly known by the ticker symbol BTC. BTC was the first decentralized cryptocurrency. It was released as open-source software in 2009. BTC was developed to secure payment transactions over a peer-to-peer network (blockchain). The intention of the creation of BTC is to bridge the need for a trusted third party, to democratize the monetary system and ensure the anonymity of transactions made through the blockchain. In contrast to traditional currencies where governments or central banks have the power to increase the money supply at will, the supply of bitcoin is capped at 21 million units hardwired within its codebase. Despite the emergence of many alternative cryptocurrencies Bitcoin still remains the largest cryptocurrency in terms of market capitalization and user acceptance.
100%
Where to buy?
Add digital assets exposure to your portfolio using existing bank or brokerage accounts, or choose a new trading platform. DDA ETPs are listed on traditional exchanges and trade just like stocks or ETFs. As an investor in DDA ETPs you do not have the need or technical capability to manage crypto wallets or worry about tax implications.
The list above features some but certainly not all of the popular banks/brokerages. If you have difficulties accessing our products through your preferred bank/brokerage, please contact us by clicking on the button below. We will reach out to your bank/brokerage and try to make the products available to you.
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Market Performance
FAQs
Cryptocurrency exchange-traded products (ETPs) provide investors with access to cryptocurrencies via a traditional investment infrastructure. DDA ETPs physically-backed by cryptocurrencies enable investors to participate cost efficiently in the price development of a single digital asset or a basket of digital assets from their personal bank accounts – just as they experience investing in stocks, bonds or ETFs.
You can buy a DDA crypto ETPs through your bank or brokerage without setting up a crypto wallet.
The DDA ETPs are available on European stock exchanges, such as Deutsche Börse Xetra, Euronext Paris & Amsterdam, SIX Swiss Exchange and Börse Stuttgart. For each exchange availability, please refer to the product-specific factsheet.
DDA ETPs are established investment structures that trade on traditional exchanges, mitigating the regulatory risk that exists when trading crypto outright on digital asset exchanges. Investors can invest in DDA ETPs with confidence, knowing that all stakeholders have been examined and trades are closely monitored to ensure all trading activities are aligned with regulatory requirements.
By purchasing bitcoin through an ETP, investors minimize the risk of losing their funds to due wallet mismanagement. DDA Bitcoin ETP is conveniently stored at specialized custodians such as BaFin-regulated Coinbase Germany GmbH or French AFM-regulated “Aplo”. Investors do not require the technical expertise to manage several wallets and private keys.
So, there are a number of advantages to using DDA Bitcoin ETP for exposure to digital assets, including the fact that they are regulated, listed, liquid, available to retail investors, and don’t present issuer risk due to their collateralised nature. Find out more here.