IETH – DDA Physical Ethereum ETP

DDA Physical Ethereum ETP is an exchange traded product (ETP) that tracks the price of Ether (ETH).

Product details
Type:Exchange Traded Note (100% collateralized)
ExchangesDeutsche Boerse Xetra
Trading CurrencyEUR
Exchange TickerIETH
ISINDE000A3GTML1
WKNA3GTML
SEDOLn/a
VALORn/a
BloombergIETH GY
RIC (Reuters)n/a
Key facts
As of Date30.11.2022
Base CurrencyUSD
Inception Date14.12.2021
DomicileLiechtenstein
Net Asset Value (USD)**0.6M
Total Expense Ratio0.95%
Replication MethodPhysically Backed by Ether (100% collateralized)
Notes Outstanding**496,950
UCITS CompliantNo
UCITS EligibleEligible*
Product StructureETP – Physically Backed by Ether (100% collateralized)
Securities LendingNo
StakingNo
Legal FormDebt Security (100% collateralized)
IssuerDDA ETP AG
AdministratorState Street Bank International GmbH
Security TrusteeBankhaus von der Heydt GmbH & Co. KG
CustodiansCoinbase Germany GmbH
RegistrarClearstream Banking AG
Registered for saleGermany, the Netherlands, Norway, Sweden, Italy, France, Estonia, Poland, Slovakia, Spain, Finland, Greece, Portugal, Slovenia, the Czech Republic, Denmark, Austria, Belgium, Cyprus, Ireland, Liechtenstein, Luxembourg, Liechtenstein, Malta, Switzerland
Product Description

DDA Physical Ethereum ETP is an exchange traded product (ETP) that tracks the price of Ether (ETH). The ETP is 100% physically backed by ETH and trades on Deutsche Börse Xetra. Each Note gives the holder a claim on a predefined amount of ETH.

  • Physically backed by Ethereum and stored in so called cold storages, highly regulated and trusted crypto custodians with an additional 3rd Party insurance
  • Competitive management fee of 0.95% p.a.
  • Listed and traded on Deutsche Börse Xetra
  • No lending – Ethereum held in custody and not lent out
  • No staking – Ethereum held in custody are not staked
Pricing Information

Coin Entitlement (CE Factor): Each Note is backed by 0.001 Ether at launch.

Price: Coin Entitlement (CE Factor) x Ether price

Key Risks

Investors’ capital is at risk and investors may not get back the amount originally invested. The ETP is structured as fully collateralized debt security, not as equity. The ETP traded on exchanges are bought/sold at market prices which may be different to the net asset value of the ETP or Ethereum

About the Issuer

DDA ETP AG is a wholly owned subsidiary of DDA Europe GmbH and the issuer of a physically backed Ethereum Exchange Traded Product (“ETP”) (ISIN: DE000A3GTML1; Ticker: IETH). 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 ETP’s, diversified index funds and alpha-seeking strategies for investors in a familiar and regulated manner.

Composition of the product

The underlying of the Notes is Ether, commonly known by the ticker symbol ETH. Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. As a blockchain network, Ethereum is a decentralized public ledger for verifying and recording transactions. The network’s users can create, publish, monetize, and use applications on the platform, and use its Ether cryptocurrency as payment. Decentralized applications running on Ethereum are commonly known as “dApps”.

ETH (Ethereum)
100%

Market Performance

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Why invest?

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.

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. All products are at all times 100% collateralized by the respective underlying, stored in “cold storage” at regulated custodians and are listed on European stock exchanges. DDA ETPs are tradable via brokers and custodian banks. Similar to an ETF, tax withholding for DDA ETPs is done automatically by the custodian bank

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.

Convenience through State-of-the-art 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.

Chances & Risks

CHANCES

  • DDA ETPs provide exposure to digital assets via a traditional investment infrastructure through your bank or brokerage. Traditional investors are thereby able to conveniently participate in the price and yield performance of digital assets.
  • DDA ETPs are always 100% collateralized – they are always fully invested in the underlying such as Bitcoin or Ethereum or a basket of digital assets. German retail investors may enjoy a preferable tax treatment after a 12 months holding period[1]
  • DDA ETPs are among the most cost-effective crypto ETPs available.

RISKS

  • Digital assets are a new technological innovation with a limited track-record. There is no assurance that usage of digital assets will continue to grow. A contraction in use of digital assets may result in increased volatility or a reduction in the price of such digital assets, which could adversely impact the value of the ETPs.
  • Digital assets are highly volatile and investors may not get their money back should a single digital asset cease to exist. Prices of digital asset may fluctuate due to changing investor confidence.
  • Governmental interventions in the digital assets markets are unpredictable, and may make digital assets or certain digital assets illegal altogether. Future regulations and directives in some jurisdictions may conflict with those others, and such regulatory actions may restrict or make some or all digital assets illegal in some jurisdictions.

Latest RESEARCH REPORTS

Service providers

How/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.

LIST BROKEPAGES / BANKs

  • Comdirect
  • DKB
  • Consorsbank
  • Deutsche bank
  • Onvista
  • Scalable capital
  • Flatex online broker
  • ING
  • Sbroker
  • Smartbroker
  • Targo bank

Note: The list above contains some but certainly not all of the popular banks/brokerages. Please reach out to us in case you are not able to access or find our products on your trading platform.

If you have difficulties accessing our products through your preferred bank/brokerage, please send us an email with more information to [email protected] We will reach out to your bank/brokerage and will try to make the product available to you.

FAQs

What is a crypto ETP?

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.

How to buy the DDA crypto ETPs?

You can buy a DDA crypto ETPs through your bank or brokerage without setting up a crypto wallet.

What exchanges are the DDA ETPs traded on?

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.

What are the advantages of investing in DDA ETPs compared to investing in crypto itself?

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.

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LEGAL DISCLAIMER

*Please verify with your investment advisor as this may differ from jurisdiction to jurisdiction.
**As values are updated once a day they might be outdated the time of viewing the website. For accurate information please refer to other official sources. The value is not necessarily the same as the ETPs’ on-exchange trading price. Investors should not expect to buy or sell the ETN at the determined value.

This website, the informational material and product information represents solely a non-binding preliminary information which serves exclusively advertising purposes and is not a prospectus in the sense of the European Securities Prospectus Act, the German Investment Act or the German Investment Code or a corresponding foreign law. The content is neither an offer nor a solicitation of an offer to purchase securities. The information on this website does not constitute investment advice or investment recommendation. The greatest possible care has been taken in the preparation of this website, but errors and omissions remain reserved. In case statements are made they are based on evaluations, economic data, own assessments and are forward looking statements at the time of preparation of the website and can be subject to changes. The price performance of cryptocurrencies is highly volatile and unpredictable and past price performance is no guarantee of future price performance.
Note: The approval of the Prospectus should not be construed as an endorsement of the securities offered or admitted to trading on a Regulated Market.

Prospective investors should read the Prospectus before making any investment decision in order to fully understand the potential risks and rewards of deciding to invest in the securities.