The DDA Physical Bitcoin ETP (Ticker: XBTI) offers investors a secure, regulated, and efficient way to gain exposure to Bitcoin (BTC) without the complexities of directly managing digital assets. As a physically backed exchange-traded product listed on major European stock exchanges, it combines the innovation of cryptocurrency with the familiarity of traditional financial instruments.
Designed for both retail and institutional investors, this ETP provides a transparent and cost-effective gateway into the world’s leading digital asset.
What Is the DDA Physical Bitcoin ETP?
The DDA Physical Bitcoin ETP is an exchange-traded product that tracks the price of Bitcoin. Each unit of the ETP represents a claim on a predefined amount of Bitcoin—specifically, 0.0001 BTC at inception. Unlike synthetic products, this ETP is 100% physically backed, meaning actual Bitcoin is held in secure custody to back every note issued.
This structure ensures full alignment with Bitcoin’s market performance, offering investors direct exposure without counterparty risk from derivatives or unsecured claims.
Key Features at a Glance
- Fully backed by physical Bitcoin stored in cold storage
- Held with BaFin- and AFM-regulated custodians such as Coinbase Germany GmbH and Aplo
- No lending activity – Bitcoin is held securely and never loaned out
- Competitive annual management fee of just 0.95%
- Listed on major European exchanges: Deutsche Börse Xetra, SIX Swiss Exchange, Euronext Paris, and Amsterdam
Why Invest in a Physically Backed Bitcoin ETP?
100% Physical Backing and Security
One of the most critical concerns for crypto investors is security. With the DDA Physical Bitcoin ETP, each note is fully collateralized by real Bitcoin held in cold storage—offline wallets that are immune to hacking attempts.
These assets are safeguarded by trusted, regulatory-compliant custodians under German BaFin or French AFM supervision. Additionally, third-party insurance adds another layer of protection, minimizing risks associated with theft or loss.
This setup eliminates the need for investors to manage private keys or worry about wallet security—a major barrier for many entering the crypto space.
Regulated Custody Without Technical Complexity
Investing in Bitcoin directly often requires technical knowledge: setting up wallets, securing seed phrases, and understanding blockchain transactions. The DDA ETP removes these hurdles.
By leveraging regulated custodial solutions, investors gain exposure to Bitcoin through a familiar financial instrument—no blockchain expertise required. This makes it ideal for traditional investors seeking crypto diversification within a compliant framework.
Trade Like a Stock on Major European Exchanges
The ETP trades like any stock or ETF on established European markets:
- Deutsche Börse Xetra
- SIX Swiss Exchange
- Euronext Paris & Amsterdam
This means seamless integration into existing brokerage accounts, real-time pricing, high liquidity, and ease of buying and selling during market hours—offering all the benefits of digital assets with none of the operational friction.
👉 See how you can trade Bitcoin exposure instantly through regulated exchanges.
Tax Efficiency for German Investors
For private investors in Germany, holding the DDA Physical Bitcoin ETP becomes tax-free after a one-year holding period. This favorable tax treatment enhances long-term investment appeal and aligns with broader wealth preservation goals.
Always consult a tax advisor to understand individual circumstances, but this feature alone makes XBTI a compelling option for German-based portfolios.
Sustainable Investment Approach
DDA is committed to responsible investing. The company offsets the carbon emissions associated with Bitcoin mining through a comprehensive carbon offsetting program. These initiatives support verified climate and nature conservation projects, ensuring that exposure to digital assets doesn’t come at an environmental cost.
This focus on sustainability appeals to ESG-conscious investors who want to participate in the crypto revolution while maintaining ethical standards.
Portfolio Diversification Benefits
Digital assets have demonstrated low correlation with traditional asset classes like equities and bonds over the long term. Including Bitcoin in a diversified portfolio can:
- Improve risk-adjusted returns
- Reduce overall portfolio volatility
- Enhance the Sharpe ratio
Bitcoin’s unique supply cap of 21 million coins also positions it as a potential hedge against inflation and currency devaluation—making it an attractive addition for forward-thinking investors.
How Pricing Works
Each note entitles the holder to 0.0001 BTC (as of inception). The net asset value (NAV) in USD is calculated as:
NAV = Bitcoin Entitlement × Current Bitcoin Price
While notes trade on exchanges at market prices—which may differ slightly from NAV due to supply and demand—the structure ensures tight tracking of Bitcoin’s underlying value.
Understanding Key Risks
As with any investment, capital is at risk. Investors may not get back the full amount they originally invested. Important considerations include:
- Market volatility: Bitcoin prices can fluctuate significantly in short periods.
- Structure: The ETP is a debt security (“Inhaberschuldverschreibung”), not a fund.
- Trading price vs. NAV: Notes may trade at a premium or discount to their intrinsic value on exchanges.
Always read the full prospectus and assess your risk tolerance before investing.
Physical Delivery Option (For Eligible Retail Investors)
Holders of the ETP may be eligible to redeem their notes for actual Bitcoin. This process must be initiated through an Authorized Participant, subject to their client acceptance policies.
Upon redemption:
- Notes are exchanged for BTC directly into the investor’s digital wallet
- If legal restrictions apply (e.g., UCITS regulations), redemption occurs in USD or EUR instead
This rare feature bridges the gap between traditional finance and self-custody crypto ownership—offering flexibility few other ETPs provide.
About the Issuer: DDA Europe GmbH
DDA ETP GmbH, a wholly owned subsidiary of DDA Europe GmbH, is the issuer of the XBTI product (ISIN: DE000A3GK2N1). Collectively known as “DDA,” the group specializes in bringing crypto asset investment products to market in a regulated, accessible format.
DDA offers:
- Physically backed crypto ETPs
- Actively managed strategies
- Investment advisory services
Their mission is to serve as a bridge between traditional finance and the evolving digital asset ecosystem.
The Role of Bitcoin in Modern Finance
Bitcoin remains the most widely adopted cryptocurrency, with the largest market capitalization and network security. Created in 2009 as open-source software, it operates on a decentralized peer-to-peer blockchain network—eliminating reliance on central authorities.
Its fixed supply cap of 21 million units contrasts sharply with fiat currencies, where central banks can expand money supply indefinitely. This scarcity underpins its value proposition as "digital gold."
Despite thousands of alternative cryptocurrencies, Bitcoin continues to dominate user adoption and institutional interest—making it a foundational asset in any digital investment strategy.
Frequently Asked Questions (FAQ)
Q: How is the DDA Physical Bitcoin ETP different from buying Bitcoin directly?
A: It allows investors to gain exposure to Bitcoin through traditional brokerage accounts without managing private keys or wallets. It's also subject to regulatory oversight and tax advantages in certain jurisdictions.
Q: Can I take delivery of actual Bitcoin?
A: Yes, eligible investors can redeem notes for physical Bitcoin via an Authorized Participant, provided regulatory conditions allow.
Q: Is the ETP safe from counterparty risk?
A: Since it’s 100% physically backed and held in cold storage with insured custodians, counterparty risk is minimized. However, issuer risk remains as it's structured as a debt security.
Q: Where can I buy the XBTI ticker?
A: It’s listed on Xetra, SIX Swiss Exchange, Euronext Paris, and Amsterdam—accessible through most European brokers.
Q: Does the ETP lend out its Bitcoin?
A: No. The underlying Bitcoin is held securely and is not lent or used in any yield-generating activities.
Q: What are the fees?
A: The annual management fee is 0.95%, which is competitive compared to similar products in Europe.
👉 Start your journey into regulated Bitcoin investing today—access global markets with confidence.