Deutsche Digital Assets (DDA), a European provider of digital asset investment solutions, has opened an office in Paris as part of its expansion strategy. The move reinforces the company’s commitment to the French market, where demand for regulated crypto investment products continues to rise.
DDA’s crypto exchange-traded products (ETPs) are already listed on Euronext Paris, offering local investors streamlined access to digital assets. With the office, the firm plans to introduce a broader range of investment solutions, including white-label products and tailored strategies.
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Moreover, the location will serve as a hub for DDA’s expansion in France, allowing the firm to strengthen relationships with local investors and partners while enhancing its service offerings, and will be led by Romain Bensoussan, DDA’s head of sales.
In an exclusive interview with PBI, Bensoussan further emphasises the company’s ambition to play a key role in the European crypto investment landscape.
PBI: How does this Paris expansion align with DDA’s broader European growth strategy?
RB: The expansion into Paris is a key step in Deutsche Digital Assets European growth strategy, as France is one of the most significant financial hubs in Europe with more than 600 Asset Managers (500 located in Paris) and a growing market for ETP investments. This expansion is also a natural choice, as DDA will benefit from a well-established network of financial professionals in Paris, as the team there has worked in France for the biggest local traditional asset managers and crypto asset managers.
Additionally, this move aligns with the company’s goal to become a leader in crypto investment products in Europe, strengthening its presence in major European financial centres.
PBI: What specific goals does DDA hope to achieve with its Paris office in the short and long term?
RB: In the short term, DDA aims to strengthen its relationships with institutional investors, asset managers, private banks, and family offices in France and French speaking countries.
In the medium and long term, the goal will be to provide differentiating and innovative investment products, compared to what is currently available in the market.
The French ecosystem remains, as of today, very conservative when it comes to crypto investments. On the investors side, there is still a lack of knowledge on crypto assets leading to a small (or even non-existent) allocation to this new asset class. On the asset managers side, most of the products currently offered in the European market are passive single underlying products, exposing investors to the, sometimes, high volatility of the crypto market.
This is the reason we launched the DDA Bitcoin Macro strategy, dynamically allocating between Bitcoin & USDC based on macroeconomic factors, aiming to reduce volatility and drawdowns over time. We believe that an allocation to crypto is becoming slowly but surely mandatory in every investor’s portfolio, but it needs to be done in a smarter, active fashion, considering the volatility of the underlying.
PBI: How does the regulatory environment in France support or challenge DDA’s crypto investment offerings?
RB: France has one of the most structured regulatory frameworks for digital assets in Europe, with the AMF (Autorité des Marchés Financiers) acting actively in the development of crypto-related financial services – the PSAN/CASP registrations have been active and structured for years, and we’re starting to see some agreements being delivered.
Additionally, the upcoming MiCA (Markets in Crypto-Assets) framework will further harmonise regulations across Europe, creating new opportunities for cross-border expansion.
PBI: Can you elaborate on the demand for crypto investment solutions in France and how DDA plans to address it?
RB: We are witnessing a growing allocation to crypto investment solutions by both individuals and professional investors in France.
As of today, the demand remains very binary:
On the one hand, we are meeting investors deeply convinced that crypto assets are here to stay – and for some of them, convinced that it is on the path to replace the traditional monetary system. These investors are looking to allocate a larger portion of their portfolios to this asset class.
On the other hand, we are also meeting very conservative investors – sometime curious, sometime hesitant – willing to get a small exposure, afraid of the historical volatility and drawdowns of this market.
Our objective is to offer innovative and smarter investment products, designed to serve the needs of different investor profiles.
PBI: What competitive advantage does DDA offer compared to other digital asset investment firms in the European market?
RB: DDA differentiates itself through its expertise in innovative investment products, and a strong track record of managing digital assets strategies in a risk-conscious manner, similar to what traditional asset managers are usually doing.
Our investment products have been awarded several times (Hedgeweek European Digital Assets 2023, Hedgeweek Global Digital Assets 2024 ….), and are considered among the best digital assets products available in the European market. In addition, DDA won the second place in the German Fintech Award for 2024 against 135 contenders.
PBI: Are there any upcoming crypto ETPs or new investment products that DDA plans to introduce in France?
RB: Of course! We are actively working on expanding our range of crypto investment products and are working closely with institutional allocators to design dedicated solutions fitting their needs.
We have, for example, worked hand in hand with the first ever German pension fund to invest in crypto, to design a product adapted to their needs and compliance requirements.
Although the ETF/ETP market is still small in France, we are observing some interesting developments in terms of products offering for both private and professional investors. An example could be the new wave of “Brokerage” P.E.R (French saving plan) launched a couple of months ago, allowing investors to include Crypto ETPs in their allocation, a revolutionary move for a format formerly only dedicated to insurance companies.
We are also monitoring carefully the evolution of the UCITS regulation in Europe – currently blocking any form of crypto investment within ETFs, hence making it impossible to include it in life insurances. But this situation could evolve quickly with a potential review of the UCITS eligibility rules.
PBI: How does the Paris team plan to engage with local investors and partners?
RB: The Paris team will focus on building strong relationships with local investors and partners by hosting educational workshops, investor roundtables, and networking events. By engaging directly with asset managers, private banks, and wealth management firms, DDA aims to integrate digital assets into the broader financial landscape in France.
PBI: How does DDA tailor its crypto investment strategies to meet the unique needs of different investor groups?
RB: At DDA, we understand that different investor groups have varying levels of risk tolerance, regulatory constraints, and strategic investments objectives.
Our range of Exchange-Traded-Products has been designed to address most of the different investors’ needs, from individual investors to professional allocators and distributors.
DDA currently offers a range of passive investment products (with products offering exposure to Bitcoin, Ethereum, and a Top 10 basket) fitting the needs of investors looking for a simple, delta one exposure to the asset class. We also offer the first European Smart Beta Bitcoin ETP, replicating the DDA Bitcoin Macro Index, designed for investors looking for Bitcoin exposure while delivering superior risk adjusted returns, with a better Sharpe ratio.
DDA also benefits from a strong expertise in designing customised products for professional investors, fitting their objectives in terms of investment universe, rebalancing frequency, and volatility target.
Additionally, we also offer ETP White Label services, for companies willing to launch their own investment product using our structure and prospectus, ideal for a short time to market.
PBI: What role does DDA’s advisory service play in helping Family Offices, High Net Worth Individuals (HNWIs), and institutional investors navigate the crypto market?
RB: Because of its comprehensive set of licences granted by the German regulator BaFin, DDA Advisory is allowed to provide the following services to institutional clients and retail clients:
- Investment Brokerage;
- Investment Advice;
- Contract Brokerage, and
- Financial Portfolio Management
We offer investment services to both private and professional investors, looking for guidance in the, sometimes, complex world of crypto assets. The company provides market research, regulatory framework and risk assessment, to best help our clients make smart and informed decisions. DDA Advisory offers portfolio allocation advice, including digital assets should it be part of the investors’ profile, into a broader investment strategy, with a strong focus on risk-control, ultimately delivering superior risk-adjusted returns.
PBI: Are there plans for further expansion beyond France, and if so, which markets are being considered next?
RB: We are indeed exploring further expansion beyond France as part of our broader European growth strategy. Our development strategy will be to focus on countries with a growing interest in ETFs and ETPs, as we believe that this format will soon take over traditional investment funds.
Switzerland could be an option for further expansion, considering the country’s appetite for digital assets investments, and innovative solutions. The Nordics have historically been pioneers in crypto adoption, with the very first Crypto ETP provider being based there.
The UK market is also recognised as a hub for innovative investment strategies, although some strong barriers still exist. The FCA currently does not allow the distribution of crypto ETPs to retail investors, meaning all ETPs listed on LSE are only available to professional investors.
PBI: How does DDA plan to educate and build trust with investors who may still be hesitant about crypto investments?
RB: Trust and Education are the two pillars on which crypto asset managers need to build, to further increase the adoption of crypto assets.
Through regular conversations and meetings with investors, we will make sure to maintain a full transparency on our investment strategies, providing performance explanations, clear risk disclosures, and ensuring full regulatory compliance.
We understand that investing in crypto assets can be a huge step for most investors, and that’s the reason why we want to guide them along the way, by publishing market analyses, research reports, and organise regular events, presentations, and workshops.
By partnering with traditional asset managers, private banks, and wealth advisors, DDA aims to bridge the gap between traditional finance and crypto assets, ultimately leading to a greater adoption of this asset class.
