ETC Group is to list the first digital asset exchange-traded product (ETP) based on an MSCI index. The ETC Group MSCI Digital Assets Select 20 ETP is set to list on Germany’s Deutsche Börse XETRA in April.
The ETP will track the performance of the MSCI Global Digital Assets Select Top 20 Capped Index. The index was developed by MSCI with ETC Group’s input and launched in March this year. It represents 20 of the largest digital assets by market cap.
The crypto assets tracked include Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Each individual constituent of the index is capped at a maximum of 30%. Stablecoins, privacy tokens and ‘meme-coins’, are excluded from the index.
The ETP will be ‘physically-backed,’ with the underlying digital assets deposited in cold storage custody, in accordance with the index composition and weighting.
Stephane Mattatia, head of thematic indexes at MSCI, commented: “The digital assets ecosystem is evolving rapidly and investor demand for access to this new asset class is growing. MSCI Digital Assets Indexes are developed with a systematic and process-oriented approach to help global investors gain transparency into this long-term, disruptive trend and enable them to make better investment decisions.”
Tim Bevan, co-CEO and founder of ETC Group, said: “We are very proud to issue this new benchmark ETP. Tracking 20 constituents, this is the first genuine broad market index ETP in this exciting new asset class providing the ideal asset allocation tool to investors.”