According to CoinDesk, State Street Global Advisors and Galaxy Asset Management are collaborating to develop crypto products. These products will provide exposure to crypto companies and spot and futures-based exchange-traded funds (ETFs). State Street Global Advisors, a subsidiary of financial services giant State Street, has filed an application with the U.S. Securities and Exchange Commission (SEC) to register a crypto-based fund named the SSGA Active Trust. Galaxy will manage the fund’s investments on a daily basis. Galaxy is associated with Galaxy Digital, a financial services company specializing in digital assets.
The collaboration aims to give investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies. The cryptocurrency industry has gained more recognition since the U.S. approval of spot bitcoin ETFs in January. However, investors are also looking for exposure to this growing asset class through investment options beyond pure spot bitcoin. Anna Paglia, Chief Business Officer at State Street Global Advisors, stated that the digital assets landscape is 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.
This latest initiative by State Street and Galaxy is a testament to the increasing popularity of crypto as an asset class. In April 2023, Galaxy Digital established a similar partnership with DWS to develop crypto management solutions for Europe. It is expected that State Street Bank and Trust will provide administrative and accounting services for the new digital assets ETFs that State Street Global Advisors and Galaxy jointly develop. Laurent Kssis, a crypto ETF specialist at CEC Capital, noted that the announcement appears short on detail.