DDA and Heliad Introduce World’s First Dynamic Blockchain ETP

Deutsche Digital Assets (DDA), in partnership with Heliad Crypto Partners, has announced the launch of the DDA Heliad Dynamic Blockchain ETP (HELI) on the Stuttgart Stock Exchange, or Börse Stuttgart, Germany’s second-largest securities market.

This new exchange-traded product (ETP) provides investors with access to a dynamically adjusted basket of up to 13 blockchain tokens.

New ETP Offers Dynamic Exposure to Top 13 Blockchain Tokens

The DDA Heliad Dynamic Blockchain ETP offers a new approach to cryptocurrency investing by tracking a dynamic index of leading blockchain tokens.

According to DDA’s X post from Dec. 17, the ETP tracks the Heliad Dynamic Blockchain Index, which selects 13 cryptocurrencies “with an exclusive focus on user adoption, market traction and usage-based performance metrics”.

🔔 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

These selected tokens include Bitcoin (BTC), Ether (ETH), Solana (SOL), Binance Coin (BNB), Toncoin (TON), Optimism (OP), Polygon (POL, ex-MATIC), Tron (TRX), NEAR Protocol (NEAR), Sui (SUI), Celo (CELO), Arbitrum (ARB), and Injective (INJ), with varying weightings.

Current composition of the DDA Heliad Dynamic Blockchain ETP. Source: DDA

“As the first of its kind, our index focuses exclusively on fundamentals-based factors such as real user activity and valuation discrepancies. This approach has produced stellar backtest results as well as strong current performance,” said Christopher Garlich, Managing Director at Heliad Crypto Partners.

The ETP not only offers dynamic exposure to a diversified basket of tokens but also provides the security and accessibility of a regulated investment product. “By leveraging DDA’s white-label ETP platform, we enable our partner Heliad to bring their crypto investment strategy to market, while ensuring compliance with regulatory standards, seamless exchange listings, and efficient index tracking,” added Dominik Poiger, Head of Product Management at DDA.

100% Physically Backed and Regulated

The DDA Heliad Dynamic Blockchain ETP is 100% physically backed. DDA ETPs replicate the performance of the underlying index with a 3.2% management fee and “give the holder of the note a claim on the predefined amount of the assets (basket of cryptocurrencies).”

According to DDA, digital assets are securely stored with regulated custodians like Coinbase Germany GmbH and Aplo, eliminating the need for investors to manage their own wallets and private keys.

The ETP trades like a stock or exchange-traded fund (ETF) on major European exchanges, such as Deutsche Börse Xetra, Euronext Paris & Amsterdam, SIX Swiss Exchange and Börse Stuttgart, providing liquidity and ease of access.

Additionally, German investors benefit from tax-free gains after a one-year holding period.

Crypto ETPs Continue to Attract Investors

The global crypto ETP market continues its upward trajectory.

ETFGI, a research and advisory firm, reported that assets invested in globally listed crypto ETPs reached a record high of $91.69 billion at the end of July. This surpasses the previous record of $84.69 billion set in March 2024, and represents an increase of 506.4% since the end of 2023.

According to ETFGI, this surge in assets is being driven by strong investor interest, with net inflows of $11.02 billion in July. Year-to-date, net inflows have already reached $56.62 billion, demonstrating a growing appetite for regulated and accessible crypto investment products.

This trend is further evidenced by the increasing number of crypto ETP listings, with 208 products and 551 listings available on 20 exchanges in 16 countries (data as of August 2024).

Source: cryptonews.com