Product Overview
The DDA Physical Bitcoin ETP (Ticker: XBTI) is an exchange-traded product designed to track Bitcoin's price with 100% physical BTC backing. Each note represents a claim on 0.0001 BTC, stored securely via cold storage under regulated custody.
Key Features:
- Full Physical Backing: BTC held with BaFin-regulated custodians (e.g., Coinbase Germany) and insured by third parties.
- Low-Cost Access: 0.95% annual fee—competitive for institutional and retail investors.
- Multi-Exchange Listings: Traded on Xetra (Germany), SIX Swiss, and Euronext Paris/Amsterdam.
- No Lending: BTC reserves are never lent out, ensuring full collateralization.
Benefits of Investing
1. Secure & Regulated Exposure
- Cold storage mitigates hacking risks.
- Compliant with EU financial regulations (e.g., BaFin, AFM).
2. ETF-Like Trading
- Seamlessly trade like stocks on major European exchanges.
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3. Sustainability Commitment
- Carbon footprint offset via certified climate projects.
4. Tax Efficiency (Germany)
- Holding >1 year = 0% capital gains tax for private investors.
5. Portfolio Diversification
- Low correlation to traditional assets (stocks/bonds) improves Sharpe ratios.
Pricing & Structure
- Bitcoin Entitlement: 0.0001 BTC per note.
- NAV Calculation:
BTC Price × Bitcoin Factor.
| Component | Detail |
|---------------------|----------------------------------|
| Underlying | Bitcoin (BTC) |
| Custodian | Coinbase Germany/Aplo |
| Management Fee | 0.95% p.a. |
Risks to Consider
- Market Volatility: BTC price swings impact ETP value.
- Liquidity Risk: Secondary market prices may deviate from NAV.
- Regulatory Changes: ETP compliance hinges on evolving crypto laws.
Physical Redemption Option
Investors may redeem notes for actual BTC through authorized participants (subject to custodian policies).
- Process: Submit request via AP → BTC sent to your wallet.
- Fallback: USD/EUR redemption if regulatory restrictions apply.
About the Issuer
DDA ETP GmbH (subsidiary of DDA Europe) specializes in regulated crypto investment products, bridging traditional finance with digital assets.
FAQ
1. Is this ETP suitable for short-term trading?
- Yes, but be mindful of BTC volatility and trading spreads.
2. How does custody insurance work?
- Third-party policies cover cold storage breaches, adding a security layer.
3. What’s the tax treatment in other EU countries?
- Consult local laws; Germany’s 1-year rule may not apply elsewhere.
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4. Can I buy this ETP outside Europe?
- Currently listed on European exchanges; check broker availability for non-EU access.
5. How often is the BTC reserve audited?
- Regular audits ensure full backing, with reports published semi-annually.
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