Deutsche Digital Assets (DDA), in collaboration with Heliad Crypto Partners, has unveiled the DDA Heliad Dynamic Blockchain ETP (HELI), which will be available on Börse Stuttgart, Germany’s second-largest stock exchange. This new exchange-traded product (ETP) aims to provide investors with exposure to a dynamically adjusted portfolio of blockchain tokens, offering a fresh approach to cryptocurrency investment.
ETP Offers Diversified Exposure to Leading Blockchain Tokens
The DDA Heliad Dynamic Blockchain ETP is designed to track a dynamic index comprising up to 13 blockchain tokens. The product is structured to select tokens based on user adoption, market traction, and performance metrics tied to real-world usage. The tokens included in the index are major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Solana (SOL), alongside others like Binance Coin (BNB), Toncoin (TON), and Polygon (POL). These tokens are weighted according to their market relevance and performance.
The ETP offers a unique investment vehicle by focusing on blockchain tokens that meet specific criteria related to user engagement and performance. This innovative approach has shown positive results in backtesting and continues to perform well, according to Heliad Crypto Partners’ Managing Director, Christopher Garlich. He emphasized that the index is grounded in real user activity and fundamental valuation, setting it apart from other crypto investment products.
🔔 𝗗𝗲𝘂𝘁𝘀𝗰𝗵𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝘀𝘀𝗲𝘁𝘀 𝗮𝗻𝗱 #Heliad 𝗶𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲 𝗗𝗗𝗔 𝗛𝗲𝗹𝗶𝗮𝗱 𝗗𝘆𝗻𝗮𝗺𝗶𝗰 𝗕𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻 𝗘𝗧𝗣 🔔
DDA, in collaboration with Heliad Crypto Partners, launches world's first Dynamic Blockchain ETP (ISIN: DE000A4AHWT9, WKN: A4AHWT,… pic.twitter.com/Zu3lVFkOnK
— Deutsche Digital Assets (@DDA_GmbH) December 17, 2024
Security and Regulatory Compliance
One of the key features of the DDA Heliad Dynamic Blockchain ETP is its 100% physical backing, which ensures that the ETP replicates the performance of the underlying index. It carries a management fee of 3.2% and gives investors a claim on a defined portion of the underlying crypto assets. The digital assets are securely stored with regulated custodians such as Coinbase Germany GmbH and Aplo, eliminating the need for investors to manage private keys or digital wallets.
Dominik Poiger, Head of Product Management at DDA, highlighted that the platform’s white-label solution allows Heliad to bring its crypto investment strategy to market while ensuring compliance with all regulatory standards. The product is listed on major European exchanges, such as Deutsche Börse Xetra, Euronext Paris & Amsterdam, and SIX Swiss Exchange, offering liquidity and ease of access to investors.
Attractive Tax Benefits for German Investors
For investors in Germany, the DDA Heliad Dynamic Blockchain ETP offers the added benefit of tax-free gains after holding the investment for one year. This feature positions the ETP as an attractive option for those looking to invest in cryptocurrency while benefiting from favorable tax regulations.
Crypto ETPs Gaining Popularity Globally
The launch of the DDA Heliad Dynamic Blockchain ETP is part of a larger trend in the growing popularity of crypto ETPs. The global market for crypto ETPs has seen significant growth, with assets invested in these products reaching a record high of $91.69 billion at the end of July 2024. This marks a significant increase from the previous high of $84.69 billion in March 2024, reflecting a 506.4% rise since the end of 2023. Strong investor interest, driven by a desire for regulated and accessible crypto investment products, continues to fuel this growth. In July 2024 alone, net inflows into crypto ETPs amounted to $11.02 billion, with year-to-date inflows totaling $56.62 billion.
The global crypto ETP landscape is also expanding, with a growing number of listings. By August 2024, 208 crypto ETP products were listed across 20 exchanges in 16 countries, further underlining the increasing appetite for this type of investment vehicle.
In conclusion, the DDA Heliad Dynamic Blockchain ETP offers a comprehensive and secure option for investors seeking diversified exposure to leading blockchain tokens. With its dynamic and fundamental-based approach, secure storage, and regulatory compliance, the product is well-positioned to attract a wide range of investors, particularly in the growing European crypto market.
