asset management company Dulwich Group Germany, with $900 billion in assets under management, is preparing to make a big push into the cryptocurrency space.
The company is preparing to launch a digital asset-specific ETF to individual investors, marking a key moment in the convergence of traditional finance and the development of the cryptocurrency space.
DWS Group focuses on cryptocurrencies
DWS Group will join the ranks of major financial institutions venturing into the cryptocurrency space.
Bjoern Jesch, the company’s global chief investment officer, admitted that the debate surrounding the intrinsic value of cryptocurrencies is ongoing and that opinions within the company are deeply divided.
Jesch mentioned that there were many different opinions within his team. One camp refuses to acknowledge the value of cryptocurrency, claiming it has no intrinsic value.
The other camp acknowledges Bitcoin’s current price, emphasizing that buyers are willing to pay $35,000 for the digital currency.
DWS Group finds itself at a crossroads as Bitcoin undergoes a massive recovery, driven by U.S. regulators approving crypto ETFs.
On one side, skeptics are allied with prominent figures like Berkshire Hathaway’s Charlie Munger, who has previously labeled cryptocurrencies as “part scam, part delusion.”
They pointed to the volatility plaguing the market as well as illegal activities involving cryptocurrencies.
In contrast, proponents emphasize the “fear of missing out” (FOMO) factor and the huge market capitalization of digital tokens, currently around $1.3 trillion.
Bitcoin in particular has shown remarkable resilience, more than doubling in value in a year, outpacing traditional stock market returns.
DWS Group Leads the Cryptocurrency Sector
DWS Group formed a partnership with prominent cryptocurrency fund manager Galaxy Digital Holdings Ltd. in April, laying the groundwork for its cryptocurrency venture.
Together they are developing a set of ETFs targeting the European market.
In addition to serving individual investors through cryptocurrency ETFs, the DWS Fintech Fund has expanded its remit to include investments in the digital asset sector.
A majority-owned subsidiary of Deutsche Bank, DWS manages an impressive €859 billion ($908 billion) in assets, showing the scale of this major change in cryptocurrencies.
While the launch of cryptocurrency ETFs represents a major step forward in widespread adoption, skeptics remain unconvinced about the long-term prospects of digital currencies.
Jesch summed up this view by saying that predicting the development trajectory of digital currencies is a difficult challenge.
He pointed to limited historical data, a lack of collateral and a lack of an established economic framework or central bank support.
He said this has led to uncertainty about whether the value will plummet to zero or rise to $40,000.
General Bitcoin News.