State Street Global Advisors and Galaxy Asset Management have announced a partnership to develop a range of cryptocurrency products designed to offer investors exposure to crypto companies through various investment vehicles, including spot and futures-based exchange-traded funds (ETFs).
State Street Global Advisors, a division of financial services giant State Street, recently filed an application with the U.S. Securities and Exchange Commission (SEC) for the registration of a crypto-based fund named the SSGA Active Trust. The fund will be managed on a day-to-day basis by Galaxy Asset Management, an affiliate of Galaxy Digital, a prominent financial services company specializing in digital assets.
The collaboration between State Street and Galaxy aims to provide investors with access to the rapidly growing $2.4 trillion digital asset ecosystem through manager-directed strategies. This initiative underscores the increasing interest in cryptocurrencies as an asset class beyond traditional investment options.
Anna Paglia, Chief Business Officer at State Street Global Advisors, emphasized the comprehensive nature of the digital assets landscape, stating that crypto-native companies are best positioned to navigate this complex ecosystem and its interactions with traditional financial markets.
While the approval of spot bitcoin ETFs in the U.S. earlier this year marked a significant milestone for the cryptocurrency industry, investors are now seeking diversified exposure to the broader digital asset space. This collaboration between State Street and Galaxy reflects a strategic response to this demand.
In a similar move, Galaxy Digital previously partnered with DWS in April 2023 to develop crypto management solutions tailored for the European market. This highlights the trend of established financial institutions aligning with crypto-focused entities to offer innovative investment products.
It is expected that State Street Bank and Trust will provide administrative and accounting services for the digital assets ETFs developed through this collaboration. Laurent Kssis, a crypto ETF specialist at CEC Capital, noted that additional details regarding the partnership are yet to be disclosed, suggesting a potentially transformative impact on the evolving digital assets landscape.