Markets
State Street and Galaxy Digital to develop crypto active trading products
State Street Global Advisors and Galaxy Asset Management said they are working together to create crypto products providing exposure to crypto companies as well as spot and futures exchange-traded funds (ETFs).
State Street Global Advisors, a unit of financial services giant State Street (STT), filed an application with the United States Securities and Exchange Commission (SEC) to register a crypto-based fund called SSGA Active Trust. Galaxy will be responsible for the day-to-day management of the fund’s investments, according to the filing. 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 manager-led strategies“, the companies said in a statement.
As the cryptocurrency industry has gained greater recognition since the U.S. approval of bitcoin spot ETFs in January, “investors are also seeking exposure to this growing asset class through investment options beyond pure spot bitcoin,” they said.
“We believe the digital asset landscape is much more than just crypto components and that crypto-native companies are best equipped to understand this ecosystem and its correlation to financial markets,” Anna Paglia, chief commercial officer of State Street Global Advisors, said in the statement.
The latest effort from State Street and Galaxy is a testament to the growing popularity of crypto as an asset class. In April 2023, Galaxy Digital established a similar partnership in place with DWS to develop crypto management solutions for Europe.
“State Street Bank and Trust is expected to provide administrative and accounting services for the new digital asset ETFs that State Street Global Advisors and Galaxy are jointly developing as part of this collaboration. The announcement appears to be lacking in details,” said Laurent Kssis, crypto ETF specialist at CEC Capital.