Nyheter
Deutsche Asset & Wealth Management alters ETF product line and enhances Swedish offering
Deutsche Asset & Wealth Management alters ETF product line and enhances Swedish offering Deutsche Asset & Wealth Management (Deutsche AWM) is altering its exchange-traded fund (ETF) line up on the Nasdaq Stockholm by de-listing certain funds while rolling out a suite of new offerings.
Ten db X-trackers ETFs will be de-listed from the Stockholm market while seven new listings will take place with a view to offering investors a broad range of international equity exposures, spanning both developed and emerging equity markets, as well as single countries. Dividend and small cap strategies for selected developed markets will also be offered. Additional ETFs from Deutsche AWMs Core-ETFs range will also be added to the product suite.
Those ETFs that are de-listing in Stockholm will continue to be listed on exchanges elsewhere in Europe. Following the changes, Deutsche AWM will continue to be the biggest ETF manager locally based on number of listed ETFs.
“We first listed ETFs on the Nasdaq OMX in 2010 and our continuing commitment to the local market is reflected in the enhanced product line-up. Our strategy is to deliver relevant international equity exposure locally, so investors in the region can use our ETFs as building blocks for cost-effective and diversified portfolios,” said Erik Rotander, Head of Nordics, Passive Investments, at Deutsche AWM.
Deutsche AWM’s European-listed db X-trackers ETFs have generated almost EUR 8 billion of inflows year-to-date (Source: Deutsche AWM, 13 August, 2015). This follows the successful move to become one of the Europe’s leading providers of physical ETFs following a programme of switching replication strategy on some of its largest funds by assets under management.
A table of db X-trackers ETFs that will constitute the new Nasdaq Stockholm-listed product suite – including ETFs due to list – is below, as well as a list of those ETFs de-listing. A Q&A on the alteration of the product line-up is available at www.etf.deutscheawm.com
For further information please contact:
John Ferry
Deutsche Asset & Wealth Management
New product line-up on the Nasdaq Stockholm
Green products remain listed. Blue products are additional listings
De-listings on the Nasdaq Stockholm (And exchanges where the ETFs remain listed)
Deutsche Asset & Wealth Management With EUR 1.14 trillion of assets under management (as of June 30, 2015), Deutsche Asset & Wealth Management¹ is one of the world’s leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
Deutsche Asset & Wealth Management is the brand name of the Asset & Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents. www.db.com
Key risks
Investors should note that the db X-trackers UCITS ETFs1 are not capital protected or guaranteed and investors should be prepared and able to sustain losses of the capital invested up to a total loss.
Shares in db X-trackers UCITS ETFs which are purchased on the secondary market cannot usually be sold directly back to the relevant fund. Investors must purchase and redeem such shares on the secondary market with the assistance of an intermediary (e.g. a market maker or a stock broker) and may incur fees for doing so (as further described in the applicable prospectus). In addition, investors may pay more than the current net asset value of a share in a db X-trackers UCITS ETF when buying shares on the secondary market, and may receive less than the current net asset value when selling such shares on the secondary market.
Investments in funds involve numerous risks including, among others, general market risks, credit risks, foreign exchange risks, interest rate risks and liquidity risks. The value of an investment in a db X-trackers UCITS ETF may go down as well as up and investors may not get back the full amount of their original investment.
Important Notice
This press release has been issued and approved by Deutsche Bank AG, London Branch and has been prepared solely for information purposes and, offer or a recommendation to enter into any transaction.
Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank) and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by BaFin, Germany’s Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany, Local Court of Frankfurt am Main, HRB No. 30 000; Branch Registration in England and Wales BR000005 and Registered Address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.
Please refer to the relevant fund’s full prospectus and the latest version of the Key Investor Information Document for more information on db X-trackers UCITS ETFs. These documents are available free of charge from Deutsche Bank AG, London Branch and constitute the only binding basis for purchase of shares in the ETFs. As explained in the relevant offering documents, distribution of ETFs is subject to restrictions in certain jurisdictions. The ETFs described herein may neither be offered for sale nor sold in the USA, in Canada, in Japan to US Persons or to persons residing in the USA.
The indices mentioned herein are registered trademarks of their respective licensors. The ETFs described in this document are not sponsored, endorsed, sold or promoted in any way by the Licensors of the indices mentioned herein (with the exception of Deutsche Bank AG). The Licensors of the indices mentioned here (including Deutsche Bank AG) make no representations or warranties concerning the results obtained by using their indices and/or index levels or in any other respect, on any given day. The index sponsors are not liable for errors in their indices and are not obliged to provide information of such errors.
All-in Fee:
Direct replication funds. • Investors should be aware that in addition to the All-In Fee, other factors may negatively impact the performance of their investment relative to the underlying index. • Examples include: Brokerage and other transaction costs, Financial Transaction Taxes or Stamp Duties as well as potential differences in taxation of either capital gains or dividend assumed in the relevant underlying index, and actual taxation of either capital gains or dividends in the fund. • The precise impact of these costs cannot be estimated reliably in advance as it depends on a variety of non-static factors. Investors are encouraged to consult the audited annual- and un-audited semi-annual reports for details.
db X-trackers UCITS ETFs are all ETFs of one of the following platforms: db x-trackers, db x-trackers II or Concept Fund Solutions plc.
© 2015 Deutsche Bank AG.
• The SEC has just approved the spot Ethereum ETFs in the US – we expect approximately 1.65 bn USD potential net inflows into US Ethereum ETFs 3 months after trading launch
• If we assumed the historical ”performance multiplier” of 6.15 to Ethereum flows to be true, then a ~15% increase in global Ethereum ETF AuM would be associated with ~92% performance
• The approval marks a significant shift in sentiment within the SEC and among US regulators in general but US investors still received inferior investment vehicles compared to European vehicles
6.5 years
The SEC has just approved spot Ethereum ETFs for trading in the US.
Although the exact date of trading launch is unknown and could take a few months, this approval marks a significant shift in sentiment within the SEC and US regulators in general.
The Grayscale Ethereum Trust (ETHE) was launched on 14 December 2017. It was the first investment vehicle that allowed professional investors to gain exposure to the second largest cryptoasset – Ethereum.
Nearly 6.5 years later, US investors finally have a more efficient investment vehicle to participate in Ethereum’s performance.
US ETF issuers made last-minute adjustments to their 19b-4 filings to meet the final deadline for the SEC’s decision on VanEck’s spot Ethereum ETF application, which was due on 23 May.
Bloomberg ETF analysts had previously commented that approval could come as early as Wednesday this week, beating consensus expectations for a later approval date. Other applicants included the same companies that applied for a spot bitcoin ETF previously, such as iShares and Fidelity.
The sudden increase in approval odds caught many by surprise, as Bloomberg ETF analysts unexpectedly raised their approval odds from 25% to 75% after the SEC asked exchanges to expedite their 19b-4 filings. Meanwhile, the odds of approval by the end of May on popular betting sites also jumped to over 50%, up from 10% just a few days earlier.
This unexpected rise in approval odds also surprised Ethereum futures short sellers, causing short liquidations in Ethereum futures contracts to surge to their highest level since March.
This caused the price of Ethereum to jump more than 10% in a matter of hours,
reversing much of its underperformance against bitcoin this year.
So, the market had already started to anticipate a potential approval.
But what’s next?
How many fund flows should we expect?
Many market observers have tried to guide down expectations for an Ethereum ETF trading launch.
The reason is that the Ethereum spot ETF approval is coming after a bonanza in fund flows into US spot Bitcoin ETFs which is why Bloomberg ETF analysts expect only around 10%-15% of Bitcoin ETF flows to flow into Ethereum ETFs.
At the time of writing, US spot Bitcoin ETFs have already seen cumulative net fund inflows in the amount of +13.2 bn USD since trading launch on the 11th of January 2024.
12.5% of that amount would imply approximately 1.65 bn USD potential net inflows into US Ethereum ETFs.
This amount would currently be equivalent to ~15% of current global Ethereum ETP assets-under-management (AuM) or around 0.7% of Ethereum’s realized cap, i.e. the amount invested on-chain.
What could be the price effect of this approval?
Nonetheless, this amount of capital could potentially still have a very significant impact on Ethereum’s performance going forward.
The reason is that Ethereum’s performance has shown a significantly higher sensitivity to global ETP flows than Bitcoin in the past.
While Bitcoin’s performance sensitivity to global ETP flows was around ~1.0, Ethereum’s performance has shown an average sensitivity of around 6.15 to global ETP flows in the past.
In other words, an increase of global ETH ETP AuM by 1% per week was associated with an average ETH/USD performance of 6.15% per week.
Now, if we assumed the abovementioned ”multiplier” of 6.15 to be true, then a ~15% increase in global Ethereum ETF AuM would be associated with ~92% performance!
That being said, the sensitivity of Ethereum’s performance to weekly ETP flows can vary significantly over time and has been around ~10.5 more recently.
As a caveat, keep in mind that correlation does not imply causation and that higher net inflows could possibly not cause increases in price.
More specifically, we estimate that global Ethereum ETP flows could only explain around 19.6% in the variation of Ethereum over the past 6 months. So, other factors such as macro or coin-specific factors have played a larger role.
What’s special about these Ethereum ETFs?
The approval marks a significant shift in sentiment within the SEC and US regulators more general. The recent passing of the “crypto bill” in the US senate has demonstrated that there is bipartisan consensus on the importance of cryptoassets for the United States.
The fact that the Trump campaign has recently started accepting crypto donations for campaign finance speaks volumes in this regard as Trump had personally shown a rather anti-crypto stance in the past.
Thus, viewed more broadly within the context of recent domestic political developments in the US, this approval could be evidence of a more mainstream acceptance of cryptoassets as a legitimate asset class.
However, US investors still receive a suboptimal investment vehicle for Ethereum:
The creation-redemption mechanism is still not done in kind and staking has not been allowed within the filings. Thus, US investors won’t be able to fully capture Ethereum’s total return profile via staking returns that currently amount to around 3.2% p.a.
European investors are once again better served with products that allow investors to participate in these total returns such as the ETC Group Ethereum Staking ETP.
Bottom Line
• The SEC has just approved the spot Ethereum ETFs in the US – we expect approximately 1.65 bn USD potential net inflows into US Ethereum ETFs 3 months after trading launch
• If we assumed the historical ”performance multiplier” of 6.15 to Ethereum flows to be true, then a ~15% increase in global Ethereum ETF AuM would be associated with ~92% performance
• The approval marks a significant shift in sentiment within the SEC and among US regulators in general but US investors still received inferior investment vehicles compared to European vehicles
This is not investment advice. Capital at risk. Read the full disclaimer
© ETC Group 2019-2024 | All rights reserved
Crypto Market Espresso | 23. May 2024
Ny aktiv ETF från First Trust på Xetra
JSUD ETF köper amerikanska företag som följer Parisavtalet
Crypto Rallies to Wall Street’s FOMO: What Happened in Crypto This Week?
MVEM ETF investerar i lågvolatila aktier på emerging markets
Endast en tredjedel av brittiska privatinvesterare har hört talas om ansvarsfulla investeringar eller ESG
Sveriges enda riktiga råvarufond har öppnat
Vilken är den bästa fond som följer Nasdaq-100?
De mest populära börshandlade fonderna april 2024
Några av de bästa guldfonderna
-
Nyheter2 veckor sedanEndast en tredjedel av brittiska privatinvesterare har hört talas om ansvarsfulla investeringar eller ESG
-
Nyheter2 veckor sedanSveriges enda riktiga råvarufond har öppnat
-
Nyheter4 veckor sedanVilken är den bästa fond som följer Nasdaq-100?
-
Nyheter3 veckor sedanDe mest populära börshandlade fonderna april 2024
-
Nyheter3 veckor sedanNågra av de bästa guldfonderna
-
Nyheter3 dagar sedanUtdelning i XACT Norden Högutdelande (maj)
-
Nyheter3 veckor sedan1VET ETP ger exponering mot Ethereum tillsammans med extra intäkter
-
Nyheter3 veckor sedanBTC1 ETP spårar priset på kryptovalutan Bitcoin
