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State Street and Galaxy Digital will develop active products for cryptocurrency trading
State Street Global Advisors and Galaxy Asset Management said they are working together 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 division of financial services giant State Street (STT), has applied with the U.S. Securities and Exchange Commission (SEC) to register a cryptocurrency-based fund called SSGA Active Trust. Galaxy will be responsible for the day-to-day management of the fund’s investments, according to filings. The company is affiliated with Galaxy Digital (GLXY), a financial services company specializing in digital assets.
Together, the companies “will provide investors access to the $2.4 trillion digital asset ecosystem strategies directed by the manager“, we read in a statement from the companies.
While the cryptocurrency industry has gained greater recognition following the U.S. approval of spot bitcoin 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 individual crypto components and that crypto-native companies are best equipped to understand that ecosystem and its correlation to financial markets,” said Anna Paglia, chief business officer at State Street Global Advisors. declaration.
The latest effort from State Street and Galaxy is a testament to the growing popularity of cryptocurrencies as an asset class. In April 2023, Galaxy Digital created a similar partnership in collaboration 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 collaboration. The announcement appears lacking in detail,” Laurent said Kssis, Crypto ETF. specialist at CEC Capital.