Markets
State Street and Galaxy Digital will develop active cryptocurrency trading products
State Street Global Advisors and Galaxy Asset Management said they are teaming up to create crypto products that offer exposure to crypto companies, as well as spot- and futures-based exchange-traded funds (ETFs).
State Street Global Advisors, a unit of financial services giant State Street (STT), has submitted an application with the U.S. Securities and Exchange Commission (SEC) to register a cryptocurrency-based fund called SSGA Active Trust. According to the document, Galaxy will be responsible for the day-to-day management of the fund’s investments. The company is affiliated with Galaxy Digital (GLXY), a financial services company specializing in digital assets.
Together, the companies will “provide investors with access to the $2.4 trillion digital asset ecosystem through strategies directed by the manager“the companies said in a statement.
While the cryptocurrency sector has gained greater recognition following the US approval of spot bitcoin ETFs in January, “investors are also looking to gain exposure to this growing asset class through investment options that go beyond pure spot bitcoin,” they said.
“We believe the digital asset landscape is much more than individual crypto components, and that crypto-native firms are best equipped to understand this ecosystem and its correlation to financial markets,” said Anna Paglia, chief business officer of State Street Global Advisors. statement.
State Street and Galaxy’s latest effort is a testament to the growing popularity of cryptocurrencies as an asset class. In April 2023, Galaxy Digital established a similar partnership in partnership with DWS to develop cryptocurrency management solutions for Europe.
“The expectation is that State Street Bank and Trust will provide administrative and accounting services for the new digital asset ETFs that State Street Global Advisors and Galaxy are jointly developing under this partnership. The announcement appears short on specifics,” said Laurent Kssis, Crypto ETF specialist at CEC Capital.