The adoption of cryptos continues. DWS is now launching new products for Bitcoin and Ether on the Deutsche Exchange. What investors need to know.

As one of the leading asset managers, DWS Group has launched two exchange-traded securities designed to price the two largest cryptocurrencies by market capitalization, Bitcoin and Ether, to be followed one-on-one.

DWS' two new exchange-traded commodities (ETCs), the "Xtrackers Galaxy Physical Bitcoin ETC" and the "Xtrackers Galaxy Physical Ethereum ETC," are listed on the Deutsche Exchange today.

These are physically backed products with annual fees of 0.35 percent, launched against the backdrop of a strategic partnership between DWS Group and crypto investment company Galaxy Digital Holdings.

DWS is working with Zodia and Coinbase to provide physical backing for the two exchange-traded products. These will store the corresponding number of Bitcoin and Ether in separate offline depots ("cold storage").

"With a combined market capitalization of more than $1.7 trillion, Bitcoin and Ethereum are now too important for investors and asset managers to ignore," said DWS product head Manfred Bauer in the statement.

"Since the first Bitcoin transaction in 2009, digital assets have evolved from a niche technological innovation to a globally recognized asset class," he continued.

This means that the institutional adoption of crypto as an asset class continues in Germany as well. Frankfurt-based DWS currently manages nearly a trillion euros.

DWS announced its collaboration with Galaxy already on in spring 2023. The company, part of Deutsche Bank, apparently sees crypto as an important means of catching up with U.S. financial giants such as BlackRock and Fidelity.