DWS Group, a German asset manager with over $900 billion in assets under management, is reportedly planning to launch cryptocurrency exchange-traded funds (ETFs) for retail investors in Europe. The move comes after a partnership with Galaxy Digital, a crypto fund manager, was announced in April this year.
According to Bloomberg, DWS’s global chief investment officer, Bjoern Jesch, said in an interview that the company is divided on the value and potential of crypto assets. He said that some people at DWS believe that crypto is worth nothing, while others say that “at least there’s a price of $35,000 for Bitcoin.”
A Bitcoin ETF Could Land Soon in Europe
Bitcoin recently reached its highest level since May 2022, driven by a surge in demand for crypto ETFs in the US and Canada. The DWS Fintech Fund, which has partnered with Galaxy Digital, has also expanded its scope to invest in crypto.
Jesch noted that the “most complex thing is to make a forecast on digital currencies,” as there is not much history, collateral, or central bank support in the space. He said that DWS is looking at various scenarios and use cases for crypto, such as payments, store of value, and digitalization.
DWS is not the only major financial institution that is exploring the crypto space. As reported, several powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency. These include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America.
DWS’s decision to launch crypto ETFs for retail investors in Europe is still subject to regulatory approval and market conditions. The company has not disclosed the details of the products or the timeline for their launch. However, Jesch said that DWS is ready to offer crypto ETFs as soon as there is enough demand and clarity from regulators.
