State Street Global Advisors and Galaxy Asset Management have announced a collaboration to create new crypto trading products. These products will not only invest in crypto companies but also in spot and futures-based exchange-traded funds (ETFs). This move comes as the cryptocurrency industry continues to gain recognition, especially after the approval of spot bitcoin ETFs in the U.S. in January.
State Street Global Advisors, a unit of State Street, has filed an application with the U.S. Securities and Exchange Commission (SEC) to register a crypto-based fund called the SSGA Active Trust. Galaxy will be responsible for managing the fund’s investments on a day-to-day basis. Galaxy Digital, a financial services company specializing in digital assets, is affiliated with Galaxy Asset Management.
According to the companies, this collaboration aims to provide investors with access to the $2.4 trillion digital asset ecosystem through manager-directed strategies. This move reflects the belief that the digital assets landscape is more than just individual cryptocurrencies and that companies native to the crypto space are best equipped to understand the ecosystem and its correlation with financial markets.
State Street and Galaxy’s partnership is a clear indication of the increasing popularity of crypto as an asset class. In April 2023, Galaxy Digital formed a similar partnership with DWS to develop crypto management solutions for Europe. The collaboration between State Street and Galaxy will likely see State Street Bank and Trust providing administrative and accounting services for the new digital assets ETFs that will be developed as part of this joint effort.
While the details of the collaboration are still scarce, analysts believe that this move represents an important step towards offering investors more diverse investment options beyond traditional spot bitcoin investments. The partnership between State Street and Galaxy is expected to bring a new level of expertise and insight into the crypto market, ultimately benefiting investors looking to gain exposure to this rapidly growing asset class.
Overall, this collaboration between State Street Global Advisors and Galaxy Asset Management signals a significant development in the world of crypto trading products. As the cryptocurrency industry continues to evolve and expand, partnerships like these will play a crucial role in providing investors with innovative and diverse investment opportunities in the digital asset space.