Although Nxtassets is no longer a brand-new player, the start-up, which focuses on cryptocurrency-based ETPs, is now gearing up for a more ambitious push. That is certainly the goal of Dirk Hess, who joined the Frakfurt-based company's management board in January 2025. He shares leadership with Vera Claas, who has been part of the company since its founding a year ago. Nxtassets launched its first ETPs at the end of February.

The joint venture is backed by prominent shareholders. The Swiss partners are Bank Vontobel, the private bank Bergos (since March 2025, as reported by finews.ch) and IBKR Financial Services AG (a subsidiary of Interactive Brokers); the German partners are 360T (a subsidiary of Deutsche Börse Group), the online broker Flatex Degiro and Börsenmedien AG.

From the Derivatives World of a Global Player to a Crypto Startup

Hess most recently worked for Citigroup in Germany for 15 years in senior positions in the derivatives business (warrants and other products), but knows Zurich and Switzerland well from his earlier career at Goldman Sachs in the area of structured products (known as certificates in Germany).

From the familiar derivatives world of a global player to a startup in the crypto sector: what was the motivation? «I can use my network here, we have owners with experience and reputation. I feel comfortable with that, which is very important for me as a contact person for investors,» replies Hess in an interview with finews.ch in Zurich. «In addition, the crypto sector is not completely different, around 80 percent is old world, for example the customers and marketing.» What is new, however, are the underlying assets and the associated technologies.

Differentiating Feature: Physical Deposit at Deutsche Börse Subsidiary

Today, there are already a whole range of specialized or broad-based providers of crypto ETPs, and recently even the giant Blackrock joined them in Switzerland. How does Nxtassets, (still) a dwarf in terms of assets under management, want to set itself apart from the competition? «We are the only ETP house whose coins are physically backed by Crypto Finance and therefore de facto by Deutsche Börse,» argues Hess.

Strictly speaking, Bitcoins & Co. are not held in custody by the Swiss-based Deutsche Börse subsidiary Crypto Finance, but by its German subsidiary. Investors can also withdraw the underlying assets at any time and transfer them to their own wallet.

Manual Processes Ensure Security

«With our form of storage, manual processes also ensure a particularly high level of security. For example, and to put it very simply, the cold wallets are never connected to the internet.» With a smile, Hess points out that this contrasts strikingly with the megatrend in the financial towards digitalization and automation.

ETPs (unlike exchange-traded funds, or ETFs) are legally classified as debt securities. Due to regulatory restrictions, actual ETFs holding crypto assets are not permitted in Europe - unlike in the United States. «With us, however, the counterparty risk is practically eliminated by the collateralization,» explains Hess, who experienced the LehmanBrothers case in the «Struki» sector himself in 2008 and knows how explosive the topic can become in crises.

Growth also Through the Owners' Network

Hess is currently holding many discussions with institutional investors who want to invest a quota in cryptocurrencies (mostly Bitcoin) for the first time. For them, the form of storage and therefore security is key – and anyone offering a solution with the reputation of Deutsche Börse can score points here. The issue of fees, which dominates the ETF business, is taking a back seat, partly because the volatility of cryptos and therefore the profit potential is very high.

The startup now needs to grow significantly to become visible on the market. «Of course, we are also working on using our owners' network to better exploit the potential,» Hess says diplomatically.

Bitcoin Will Be «Incorporated»

Hess also wants to grow in terms of personnel. «We will not function as a two-person company in the long term, but will soon also need a sales team.»

Bitcoin is currently a widely discussed topic, particularly as an investment asset. However, the original expectation that is would transform the financial system by becoming a mainstream means of payment has not been realized. Instead, cryptocurrencies are increasingly being integrated into the traditional financial system.

Nevertheless, Hess warns against underestimating the disruptive potential. «The younger generation is already familiar with blockchain technology and has many use cases in mind.» As an example, he points out that the costs of even simple transactions such as currency exchange in the traditional banking system are still very high.

Will the USA Also Finance itself via stablecoins in the future?

In the U.S., the regulatory landscape for cryptocurrencies has shifted dramatically since Donald Trump took office. In fact, the Senate - even with bipartisan support - passed a federal framework for regulating stablecoins in May, through the GENIUS (Guiding Emerging National Innovations for Unified Standards) Act. These tokens are backed by fiat currencies like the U.S. dollar or asset such as government bonds.

«This could be a clever move, because many investors also want to diversify into stablecoins, and thus indirectly finance the U.S. national budget,» comments Hess, looking beyond the world of real cryptocurrencies.