In a move that underscores the growing significance of the cryptocurrency industry, State Street Global Advisors (SSGA), one of the world’s largest investment managers, has partnered with Galaxy Asset Management to launch a new exchange-traded fund (ETF) that provides exposure to various crypto-related companies.
Active Crypto ETF
According to SSGA’s application with the U.S. Securities and Exchange Commission (SEC), the new fund, named the SSGA Active Trust, aims to invest in the equity securities of companies involved in the cryptocurrency and blockchain ecosystem. This includes blockchain software developers, bitcoin miners, crypto exchanges, and crypto payment processors.
The fund plans to invest not only in the equities of these crypto-focused companies but also in crypto futures ETFs, contracts, and spot crypto ETPs. The move reflects the industry’s maturation and the increasing demand for investment vehicles that offer exposure beyond just the spot price of bitcoin.
Collaborative Effort
Under the partnership, State Street Bank and Trust will handle the administrative and accounting tasks for the new digital asset ETFs, while Galaxy will manage the day-to-day operations of the products. This collaboration leverages the strengths of both firms, with SSGA’s extensive experience in ETF management and Galaxy’s deep expertise in the crypto space.
“We believe that the digital assets 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,” said Anna Paglia, chief business officer at SSGA.
Established Players
SSGA, known for launching its first listed ETF in 1993, currently manages over $4.3 trillion in assets as of March this year. Galaxy, on the other hand, is a digital asset-focused firm that oversees around $6.2 billion in assets.
The partnership between these two industry leaders highlights the growing institutional interest and acceptance of cryptocurrencies and blockchain technology as viable investment opportunities.
