State Street and Galaxy Digital Partner to launch Digital Asset Based Strategies
State Street Global Advisors and Galaxy Asset Management announced a partnership aimed at providing investors with next-generation digital asset-based strategies that will offer exposure to cryptocurrency companies.
Galaxy and @StateStreetGA are collaborating to bring investors the next generation of digital asset-based strategies that will offer exposure to companies involved in the digital asset space, going beyond cryptocurrencies and bitcoin.
— Galaxy (@galaxyhq) June 26, 2024
Press Release: https://t.co/oWBEoxd8mi pic.twitter.com/QS6vSVnBsL
According to its announcement on Wednesday, bringing investors the newest innovation in digital asset investing is the goal of this partnership between leading global asset managers. State Street Global Advisors and Galaxy Asset Management will enable investors to access the $2.4 trillion digital asset ecosystem through manager-directed strategies.
Chief Business Officer at State Street Global Advisors, Anna Paglia, stated, "We believe that the digital asset landscape is so much more than the single crypto components and that crypto native companies are best equipped to understand that ecosystem and its correlation with financial markets."
She continued, "We are happy to be collaborating with Galaxy to give investors the chance to learn about the role digital assets can play in a diversified portfolio and to take part in the next phase of the ecosystem's growth and innovation.
Since spot bitcoin ETFs were introduced, interest in digital assets has increased among both institutional and retail investors. But in addition to pure spot bitcoin, investors are also looking for other ways to gain exposure to this growing asset class. We think that this is where the ecosystem of digital assets will grow to its next level.
According to Steve Kurz, Global Head of Asset Management at Galaxy, "active management across the full ecosystem of digital assets and crypto companies has been a core competency since Galaxy was founded."
"We feel we are in a strong position to make digital assets more accessible to the broader investment community through the creation of new ETFs offering exposure to digital assets by partnering with State Street Global Advisors and utilizing our combined expertise."
It is anticipated that, as part of this collaboration, State Street Global Advisors and Galaxy will work together to develop new digital asset exchange-traded funds (ETFs), with State Street Bank and Trust providing accounting and administrative services. The new fund is called the SSGA Active Trust, per State Street Global Advisors' application to the U.S. Securities and Exchange Commission. The regulator has not yet granted the application approval.
Since launching the first listed exchange-traded fund (ETF) in the United States in 1993, State Street Global Advisors has grown to become one of the largest global ETF providers, managing assets worth over $4.3 trillion.
Most recently, State Street started offering services for three of the first Spot Bitcoin ETFs to be introduced in the US. These three ETFs combined the company service model with three digital custodians. Additionally, State Street served as the issuing, paying, and administration agent for two new European ETCs and provided cash custody and fund administration services for Australia's first Bitcoin exchange-traded fund.
Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.