Asset manager State Street Global Advisors has joined forces with crypto investment firm Galaxy Digital to introduce novel exchange-traded funds aimed at providing exposure to digital assets. Both firms indicated in separate statements that these ETFs would transcend the realm of conventional spot Bitcoin offerings.
“Institutional and retail interest in digital assets has surged since the advent of spot Bitcoin ETFs. However, investors are increasingly looking for avenues to engage with this burgeoning asset class through diversified investment options,” noted State Street, a $4.1 trillion asset manager, in a statement released on June 26.
This initiative coincides with State Street’s submission of a filing to U.S. securities regulators on the same day proposing the SPDR Galaxy Digital Asset Ecosystem ETF. This ETF aims to invest in publicly traded companies involved in digital assets, spanning from cryptocurrency exchanges and mining firms to providers of hardware wallet services and crypto-focused venture capital firms both in the United States and globally. Additionally, the fund intends to explore investments in futures and spot ETF products.
State Street has also put forth proposals for two other ETFs: the SPDR Galaxy Emerging Technology Enablers ETF and the Hedged Digital Asset Ecosystem ETF to the Securities and Exchange Commission.
Commenting on these developments, Dadi Kristjansson, CEO of Viska Digital Assets, remarked, “Crypto is gradually solidifying its status as a mainstream asset class. This latest move is yet another bullish indicator,” in a post dated June 26.
Meanwhile, Nate Geraci, President of the ETF Store, acknowledged the significance of these moves but expressed surprise that State Street did not fully embrace spot Bitcoin ETFs and the upcoming spot Ether ETFs.
State Street Bank and Trust is slated to provide administrative and accounting services for the digital asset ETFs developed jointly by SSGA and Galaxy Digital. State Street’s foray into digital assets dates back to at least June 2021 when it established a dedicated digital asset division. However, unlike some of its major competitors, SSGA has not recently applied for spot Bitcoin or Ether ETFs.
According to data from Farside Investor, U.S. spot Bitcoin ETFs, launched by some of State Street’s key rivals, have witnessed inflows exceeding $14.4 billion since their introduction five and a half months ago.
In related news, the impact of crypto voters on the 2024 election is already being felt and is anticipated to continue, as reported in a recent magazine article.