Performance in Focus: DDA Crypto Select 10 ETP – Rebalancing February 2025
By Dominik Poiger, Head of Product Management, DDA
Key Takeaways
- Index and product rebalanced at 17:00 CET, 28 February 2025
- Chainlink (LINK) added to the index, no deletions
- AuM shrank from USD 36.5M to USD 28.9M and shares outstanding declined slightly
- Diversification into altcoins makes sense but bitcoin should be the core holding
The DDA Crypto Select 10 ETP went through its sixth rebalancing since DDA incepted and listed the product on Deutsche Börse Xetra on 22 June 2023. The index provider MarketVector released its quarterly review of digital assets indices on 26 November 2024, including the MarketVector Digital Assets Max 10 VWAP Close Index (“MVDAMV”), the underlying index for the DDA Crypto Select 10 ETP.
According to the index methodology, the index was then rebalanced to its new target composition at the end of 28 February 2025. Find out more about the index and index methodology here:
New Allocation as of 28 February 2025
| Asset | Weight in % | → → → | Asset | Weight in % |
| BTC | 70.3% | BTC | 73.2% | |
| ETH | 15.8% | ETH | 11.7% | |
| SOL | 4.2% | XRP | 5.5% | |
| XRP | 3.6% | BNB | 3.7% | |
| BNB | 3.5% | SOL | 3.2% | |
| ADA | 1.4% | ADA | 1.0% | |
| AVAX | 0.7% | TRX | 0.9% | |
| TRX | 0.6% | LINK | 0.4% | |
| AVAX | 0.4% |
Source: DDA, MarketVector, data as of 28 February 2025
Chainlink (LINK) added to the index
The index showed little turnover with Chainlink being added to the index while no asset was removed from the index.
Founded in 2017, Chainlink is a blockchain abstraction layer that enables universally connected smart contracts. Through a decentralized oracle network, Chainlink allows blockchains to securely interact with external data feeds, events and payment methods, providing the critical off-chain information needed by complex smart contracts to become the dominant form of digital agreement.
The Chainlink Network is driven by a large open-source community of data providers, node operators, smart contract developers, researchers, security auditors and more. The company focuses on ensuring that decentralized participation is guaranteed for all node operators and users looking to contribute to the network.
Consequently, the index is now composed of 9 assets. This is due to the fact that the index universe is driven by the MarketVector Digital Assets 10 Index, which also includes one coin that does not qualify for ETP underlyings on Deutsche Börse Xetra (Dogecoin (“DOGE”) currently is not eligible on Deutsche Börse Xetra). However, Deutsche Börse Xetra announced a change to their inclusion methodology which will become effective during the next rebalancing.
Trump, Tarrifs and other Tales
February was not a good month for crypto assets, which corrected violently amid a more general market weakness. The resurgence of trade wars weighed heavily on consumer confidence data and, as a result, the most crowded trades saw violent profit-taking, particularly Magnificent 7s and Bitcoin.
Currently, most of the variance in Bitcoin is explained by the global growth factor, followed by the dollar factor, with the rest being anecdotal.
If we take a step back, equity indices outside the US have held up very well and the credit market, even in the US, has not shown any signs of tension yet, so we are far from panic fear, even if global growth is likely to suffer in the short term from these trade wars.
As a result, however, we have seen a sharp fall in US long-term interest rates and in the dollar, which is generally good news for Bitcoin. Commodities have eased significantly, and this fall in consumer confidence, coupled with rates that were still relatively high recently and creating a tightened environment, should ultimately give the Fed more room to resume its rate-cutting cycle in the months ahead, which would make the dollar factor more supportive.
Performance of DDA Crypto Select 10 ETP
| 1M | 3M | 1Y | 3Y | YTD | Since Inception* | |
| DDA Crypto Select 10 ETP | -24.1% | -19.2% | 16.8% | n/a | -16.6% | 147.3% |
Source: DDA, data as of 28 February 2025
The top performing coin (as over the last observation period) was Ripple (“XRP”) with +22.5%.
| Top 3 | Performance in % since last rebalancing (or inception) |
| XRP | 22.5% |
| TRX | 10.8% |
| BNB | -10.6% |
| Bottom 3 | Performance in % since last rebalancing (or inception) |
| AVAX | -50.8% |
| ADA | -42.0% |
| SOL | -40.5% |
There is no Second Best? The Advantages and Disadvantages of Portfolio Diversification
When investing into cryptocurrencies, it is important to consider that diversification – as in traditional capital markets – delivers a net benefit to investors. However, there are very few crypto assets that have managed to outperform Bitcoin over the course of various market cycles: So far, only Ripple (XRP), Dogecoin (DOGE), and Ethereum (ETH) managed to outperform Bitcoin (BTC) over two market cycles, i.e. managed to make two new highs in relative terms (denominated in Bitcoin).
In one of our previous research articles (DDA Crypto Espresso – Cryptoassets: There is no second best? The advantages and disadvantages of portfolio diversification), we have studied the alpha (outperformance vs bitcoin), beta (sensitivity of a token vs bitcoin) and the theta (time trend measured in days) of various cryptocurrencies.
The results were the following:
- most Altcoins are high beta and negative theta derivatives of Bitcoin (BTC)
- Binance Coin (BNB), Solana (SOL), Polygon (MATIC), and TRON (TRX) that exhibit a positive theta relative to Bitcoin (BTC)
- Altcoins do have a place in a diversified portfolio of crypto assets but Bitcoin (BTC) should be a core holding of the passive portfolio itself
When investing in cryptocurrencies, it is therefore of utmost importance to consider the design of the concept. While other basket ETPs artificially cap the exposure to bitcoin, the DDA Crypto Select 10 ETP was specifically designed with the above-mentioned analysis in mind: Bitcoin needs to be the core holding of a passive portfolio; altcoins do have a place in a portfolio, but their weight should not be artificially inflated.
About DDA Crypto Select 10 ETP
| Product name | DDA Crypto Select 10 ETP |
| Ticker Xetra / Bloomberg | SLCT GY / SLCT |
| ISIN / WKN | DE000A3G3ZD0 / A3G3ZD |
| TER | 1.69% |
| Base Currency | USD |
| Trading Currency | EUR |
| Underlying | MarketVector™ Digital Assets Max 10 VWAP Close Index (“MVDAMV”) |
| Product Structure | Physically replicating |
| Rebalancing Frequency | Quarterly |
| Index Provider | MarketVector |
| Domicile | Liechtenstein |
| Issuer | DDA ETP AG |
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The material and information contained in this article is for informational purposes only. Deutsche Digital Assets, its affiliates, and subsidiaries are not soliciting any action based upon such material. This article is neither investment advice nor a recommendation or solicitation to buy any securities. Performance is unpredictable. Past performance is hence not an indication of any future performance. You agree to do your own research and due diligence before making any investment decision with respect to securities or investment opportunities discussed herein. Our articles and reports include forward-looking statements, estimates, projections, and opinions. These may prove to be substantially inaccurate and are inherently subject to significant risks and uncertainties beyond Deutsche Digital Assets GmbH’s control. We believe all information contained herein is accurate, reliable and has been obtained from public sources. However, such information is presented “as is” without warranty of any kind.
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