State Street Partners with Galaxy Digital to Launch Digital Asset ETFs
Summary:
State Street Global Advisors and crypto investment company, Galaxy Digital, have announced their partnership to launch exchange-traded funds (ETFs) for digital assets. The ETFs aim to provide investors with exposure beyond spot Bitcoin. State Street, managing assets worth $4.1 trillion, believes this move could stimulate growth in the digital asset ecosystem. Proposals have been filed for SPDR Galaxy Digital Asset Ecosystem ETF investing in public digital asset firms and two more ETFs. The bank has been in the digital asset space since June 2021.
State Street Global Advisors, an asset management firm, is partnering with Galaxy Digital, a cryptocurrency investment firm, to develop new exchange-traded funds (ETFs) focused on digital assets. Both firms have indicated that these ETFs might extend past simply covering Bitcoin (BTC). They noted that investors have shown increased interest in digital assets since the introduction of spot Bitcoin ETFs, and are now seeking broader means of exposure to this flourishing asset class. State Street, which manages assets worth $4.1 trillion, believes this diversification is the key to stimulating further growth within the digital asset landscape.
In recent developments, State Street filed a proposal for a SPDR Galaxy Digital Asset Ecosystem ETF with the US securities regulator on June 26. This ETF will invest in public digital asset organisations, potentially encompassing anything from cryptocurrency exchanges, mining firms, hardware wallet service providers to US and international crypto-specific venture capital firms. The proposed fund is also expected to invest in futures and spot ETF products.
Additionally, State Street proposed the SPDR Galaxy Emerging Technology Enablers ETF and the Hedged Digital Asset Ecosystem ETF to the Securities and Exchange Commission. The firm has been active in the digital asset arena since June 2021 when it set up a dedicated digital division for such assets.
However, unlike some of its main competitors, SSGA has not applied for any spot Bitcoin or Ether ETFs recently. In contrast, spot Bitcoin ETFs issued in the US by other firms have reportedly seen flows exceeding $14.4 billion over the past five and a half months, according to Farside Investor.
Nate Geraci, President of the ETF Store, deemed the introduction of these new ETFs as noteworthy. However, he expressed surprise that State Street hasn't capitalized more on the trend by launching spot Bitcoin or Ether ETFs. Dadi Kristjansson, CEO of Viska Digital Assets, viewed the news optimistically, noting that cryptocurrency is making steady progress towards being recognized as a mainstream asset class.
State Street Bank and Trust is expected to provide administrative and accounting services for the digital asset ETFs being developed by SSGA and Galaxy Digital.
Published At
6/27/2024 6:12:37 AM
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