DWS Group, a $900 billion German asset manager, is reportedly looking to launch cryptocurrency exchange-traded funds for retail investors after a partnership between DWS and Galaxy Digital, a cryptocurrency fund management company, was announced in April this year to launch these funds on the European market.
According to Bloomberg, Bjoern Jesch, DWS’s global chief investment officer, said in an interview that the move is dividing cryptocurrency bulls and bears at the firm, saying that some people believe crypto is worth nothing, while others say that “at least there’s a price of $35,000 for Bitcoin.”
Bitcoin recently reached its highest level since May 2022, driven by a crypto ETF craze that is sweeping the market. The DWS Fintech Fund, which has partnered with Galaxy Digital Holdings, has also broadened its scope to invest in crypto. DWS, which is majority-owned by Deutsche Bank.
Jesch noted that the “most complex thing is to make a forecast on digital currencies,” as there isn’t a lot of history, collateral, or a central bank in the space.
As CryptoGlobe reported, major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States kicked off.
As noted by CoinShares Chief Strategy Officer, Meltem Demirors, at least eight financial behemoths, which include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America are “actively working to provide access to Bitcoin and more.”
The $27 trillion figure, it’s important to point out, represents a grand total of assets under management across the aforementioned institutions, and only a minuscule fragment of this gargantuan sum is anticipated to be channeled into cryptocurrency investments.
Featured image via Pixabay.