- DDA and Compass FT unveil the world’s first index that dynamically adjusts Bitcoin exposure based on macroeconomic factors
- This investment strategy is based on DDA research findings, offering investors comprehensive exposure to Bitcoin dependent on macroeconomic conditions
- This index marks the first step of DDA in launching smart beta strategies in an ETP format, incorporating principles from traditional asset management
FRANKFURT, GERMANY, December 12, 2023 – Deutsche Digital Assets (DDA), a German digital asset manager, has partnered with Compass Financial Technologies, the leading Swiss-based, BMR-registered independent index provider, to introduce a revolutionary Bitcoin investment strategy with the launch of the DDA Bitcoin Macro Allocation Index (DDAMACRO Index). This index dynamically adjusts exposure between Bitcoin and USD in response to key macroeconomic factors and notably, stands as the world’s first index leveraging macroeconomic indicators to regulate Bitcoin exposure.
In October 2022, DDA released a notable research paper on Crypto Assets and the Macroeconomy revealing that 4 major economic factors, on average, explain 83% of Bitcoin’s long-term price movements, establishing Bitcoin as a macroeconomic asset. Leveraging the findings of this research, DDA and Compass FT present an index solution designed to provide investors with comprehensive exposure to Bitcoin, based on macroeconomic factors as indicated by their explanatory power at a given time. In instances where these factors do not align, the divested portion is strategically allocated to USD.
Marc des Ligneris, who is in charge of quantitative strategies at Deutsche Digital Assets, emphasizes the strategy’s potential, stating, “This strategy exploits the fact that, until now, every crypto winter has been at least partially explained by major macroeconomic factors. As long as this is the case, this strategy should perform well. We believe it can help passive investors to better manage their risk over the long run.”
“We are thrilled to partner with Deutsche Digital Assets for the first time and accompany them on releasing this unprecedented, innovative solution,” says Guillaume le Fur, CEO of Compass Financial Technologies. “This new index integrates relevant, key macroeconomic factors, enabling investors to skillfully manage their exposure to Bitcoin amidst diverse market conditions.”
This strategic initiative represents the first in a forthcoming series of smart beta strategies, designed to diversify from conventional passive strategies with the objective to make these available to investors through traditional structures such as an ETP.
About Deutsche Digital Assets –– www.deutschedigitalassets.com
Established in 2017, Deutsche Digital Assets GmbH (DDA) is a German crypto and digital asset manager that serves as a trusted gateway for investors seeking exposure to crypto assets. DDA, through various subsidiaries, offers a menu of crypto investment products and solutions, ranging from passive to actively managed, as well as financial product white-labeling services for asset managers. By leveraging traditional financial products, DDA provides investors with familiar access to a range of crypto asset ETPs and quantitative strategies, making crypto and digital asset acquisition as easy as buying a stock. For more information, please visit https://deutschedigitalassets.com/.
About Compass Financial Technologies SA –– www.compassft.com
Compass Financial Technologies SA is an independent Swiss-based company focused on the design, calculation, and administration of market benchmarks and tailor-made quantitative investment strategies.
Founded in 2017, Compass has locations in Lausanne, Paris, and New York. For more than 20 years, the team at Compass has been developing recognized benchmarks ranging from simple vanilla indices to complex index strategies based on quantitative models and market intelligence. Compass calculates nearly 1,500 indices for institutional clients, from investment banks and pension funds to asset managers related to all asset classes. Compass Financial Technologies (France) is a registered Benchmarks Administrator by the Autorité des Marchés Financiers (AMF) under the EU Benchmarks Regulations (EU BMR).
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