Effortless and Brilliant Approach to Capitalize on Bitcoin, Ethereum, XRP, and Other Crypto Assets
Riding the Crypto Wave Without the Headaches
Want to jump on the cryptocurrency bandwagon but put off by storage concerns? There's an easier, smarter way to invest in the crypto market's price movements, even without self-custody and the hassle of broad diversification.
The digital currency boom continues to soar, yet many investors remain hesitant to dive in due to storage complications. Keeping cryptos secure in a world brimming with hacker threats isn't exactly a walk in the park. But there's a solution that lets you reap the rewards of the crypto market without the self-custody troubles.
Welcome to the era of hassle-free crypto investing
The DDA Crypto Select 10 ETP (WKN: A3G3ZD) offers this unique opportunity. Ready to learn more about this innovative product? I recently sat down for a chat with Maximilian Lautenschläger, Managing Partner at DDA.
A tax-free, diversified crypto investment? Isn't that too good to be true?
It's true! Our DDA crypto-ETPs are among the lucky few products that let German investors enjoy tax-free, diversified crypto investments. How is that possible? The answer lies in the BMF Circular of May 3, 2022, which equates physically backed and deliverable crypto-ETPs with Xetra-Gold for tax purposes.
In layman's terms, this means: private investors in Germany who hold our ETPs for more than a year can easily breeze past those pesky capital gains taxes–just like with physical gold. But remember, this tax-exemption applies only to physically backed and genuinely deliverable products, which our ETPs undoubtedly meet.
We focus on striking the right balance in our selections: the DDA Crypto Select 10 ETP boasts around 70% invested in Bitcoin–a stable anchor with high market acceptance and relatively low volatility. The remaining 30% goes to popular altcoins such as Ethereum, Solana, Cardano, and Ripple. These altcoins don't offer a structural alpha, but they do have a high beta to Bitcoin, helping your portfolio shine in bull markets.
An intriguing aspect is that these five cryptocurrencies–Bitcoin, Ethereum, Ripple, Solana, and Cardano–were recently mentioned in connection with a possible state crypto reserve in the USA. This underscores their political relevance and shows our allocation is both up-to-date and forward-thinking.
In a nutshell, our ETPs merge the stability of Bitcoin with the growth potential of select altcoins in a tax-friendly, regulated, and professional framework.
Insurance for your assets against hacks
Now, we all know that ETPs aren't particularly popular with many investors due to the potential insolvency risks. But worry not, because we've got your assets covered! Every single cryptocurrency held within our ETPs is physically secured, not just represented through a synthetic arrangement. The coins are safeguarded with a regulated third-party custodian in secure cold wallets, ensuring that your assets are legally separate from the issuer's assets.
In the graveyard of insolvency, your investors' funds are the sole survivors, thanks to our "investor confirmation," boasting the highest security standards required by institutional investors.
Secure as a fortress against hacker attacks
The security of customer funds is our #1 priority. We make sure that our assets are stored with regulated, licensed custodians for institutional customers, placed in multi-signature wallets, and kept completely offline (cold storage).
Beyond that, we've insured our assets against various risks, including cybercrime. Our strategic custody approach is akin to that of large banks, adjusted to suit the intricacies of the crypto realm. This robust security setup helps build trust in a market still perceived as risky by many. We may not be able to eliminate market risk, but we do our best to minimize operational risks to the absolute minimum.
Tight wallet with fees? Don't sweat it
You might think the 1.69% fees for our ETPs seem steep, considering the typical ETF rates. But remember, crypto-ETPs are far more complex to operate. Factors like price determination, custody, rebalancing, liquidity management, and regulatory requirements drive up costs considerably.
We believe we offer fair value, and we've already demonstrated our willingness to nudge fees down. Case in point: the DDA Bitcoin Macro ETP, where we temporarily cut ongoing costs to 0.00%.
In the long run, we anticipate mild fee reductions, but not at the expense of security or product quality. As expected, these two factors will remain priceless at DDA.
How's the mix made?
Our products follow a clear, transparent, and rule-based index strategy. Our flagship product, the DDA Crypto Select 10 ETP, represents the top ten cryptocurrencies by market capitalization–no artificial caps or meddlesome weighting interventions. Selection is purely based on market realities.
To maintain quality, we avoid stablecoins, memecoins, and privacy coins, which can pose regulatory risks and jeopardize the index's integrity.
We update the portfolio monthly to catch market shifts early. Key factors we consider are liquidity, tradability, and regulatory suitability.
A strong nod to institutional credibility: the DDA Crypto Select 10 is presently the sole crypto-ETP invested in by a German pension fund, a testament to our commitment to transparency, security, and regulatory integrity.
We also offer the DDA Bitcoin Macro ETP, which we believe offers the most compelling Bitcoin investment option on the market. This ETP adopts an innovative approach: it dynamically balances between Bitcoin and USDC based on a rule-based, macroeconomic model. The intent is to ride the positive Bitcoin trends while significantly reducing risk during weak market phases.
The numbers don't lie: lower volatility (60.2% vs. 69.85%), fewer drawdowns (–60.73% vs. –82.56%), and a higher Sharpe Ratio (1.78 vs. 1.1) compared to a pure Bitcoin investment. Currently, we proudly offer this ETP with 0.00% ongoing costs, a clear sign of efficiency, transparency, and customer-focused approach.
Who are the DDA ETPs tailored for?
Our ETPs target long-term investors who recognize the potential of cryptocurrencies but prize structure, diversification, and tax optimization. This category includes private investors as well as asset managers, family offices, and institutional investors searching for a hassle-free, regulated gateway to the digital assets kingdom–without the worries of personal wallet maintenance, private key management, or exchange risks.
The DDA Crypto Select 10 ETP is for investors who believe in Bitcoin as the ultimate store of value but crave the specific benefits offered by selected altcoins. This blend could lead to outperformance in bull markets, while maintaining an aura of professionalism and security.
The DDA Bitcoin Macro ETP is designed for investors who view Bitcoin as their core investment but seek to particularly lower volatility and drawdown. Through dynamic reallocation between BTC and USDC based on macroeconomic signals, it delivers an exceptional risk-reward combination–ideal for both skilled and risk-averse investors.
Today, you can invest in cryptocurrencies without the headaches of storage concerns by considering the DDA Crypto Select 10 ETP. This product offers tax-free, diversified investments in Bitcoin and popular altcoins such as Ethereum, Solana, Cardano, and Ripple.
Moreover, the assets held within the ETP are physically secured with a regulated third-party custodian in secure cold wallets, ensuring the highest levels of security against hacker attacks. The DDA Crypto Select 10 ETP remains investor-friendly, aiming to provide a hassle-free, regulated, and professional gateway to the digital assets kingdom.
