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Wintermute, a crypto algorithmic trading firm and liquidity provider, has been chosen by ETC Group to serve as the primary liquidity provider for its new cryptocurrency-linked exchange-traded product (ETP), the MSCI Digital Assets Select 20 ETP (DA20).
The DA20 is the first crypto ETP based on an MSCI index and will be physically backed, with Komainu acting as the primary custodian holding the assets in cold storage.
Wintermute will be responsible for the execution of creations and redemptions of the DA20, as well as the rebalancing of the crypto asset basket. The ETP is designed for institutional market participants, offering diversified exposure to digital assets through a regulated product.
Evgeny Gaevoy, CEO and Co-Founder of Wintermute, stated, "We are looking forward to working with ETC Group to provide institutional clients with access to the crypto ecosystem through regulated digital asset securities. This ETP presents an opportunity for investors to diversify their portfolio while familiarizing themselves with crypto as an asset class. Additionally, by leveraging our ability to offer competitive liquidity for high-volume crypto trades, investors will know that they are able to best take advantage of any market presented by the DA20. We are confident that this product will satisfy the demands of institutional investors, further bridging the gap between the crypto and traditional markets."
The DA20 is based on the MSCI Global Digital Assets Select Top 20 Capped Index, which tracks the performance of 20 leading digital assets, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The index will be rebalanced quarterly.
Tim Bevan, Founder and Co-CEO at ETC Group, commented, "We are very proud to announce this new relationship with Wintermute, one of the world's leading providers of liquidity within the digital asset space. By integrating their capabilities into our platform, we will be able to provide a sophisticated new range of products of which the MSCI Digital Assets Select 20 ETP will be first. This ETP provides investors the first genuine broad-market index product to allocate exposure to this new and exciting asset class."
The ETP will be physically backed by the components of the MSCI index, with assets held securely by Komainu, a digital asset custody solution. The product is set to be initially listed on the German stock exchange Xetra, with plans for further listings across Europe.
