By
Godfrey Benjamin
June 28th, 2024
According to the announcement, State Street Bank and Trust will manage the day-to-day operations and administration of the new ETFs.
State Street Global, the world’s fourth-largest asset manager, has announced a partnership with Galaxy Digital to offer customers access to digital asset-based exchange-traded funds (ETFs) that extend beyond Bitcoin (BTC).
In a recent announcement, the new offerings will be introduced to the market through State Street Global’s subsidiary, State Street Global Advisors. This investment management company partnered with Galaxy Asset Management, an affiliate of Mike Novogratz’s Galaxy Digital, to launch new manager-directed strategies that will expose investors to a broader range of digital assets outside spot Bitcoin ETFs.
Expanding Investment Horizons
The partnership between State Street Global Advisors and Galaxy Asset Management is designed to introduce the latest innovations in digital asset investing.
Both companies plan to combine their strengths, expertise, and resources to offer investors access to the $2.4 trillion crypto economy through manager-directed strategies.
We’re excited to be joining forces with @StateStreetGA to offer investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies. Expanding investment options beyond pure spot Bitcoin is where we see the next level of growth for the ecosystem. https://t.co/gAhHy9054b
— Mike Novogratz (@novogratz) June 26, 2024
By leveraging State Street’s robust investment management capabilities and Galaxy Digital’s expertise in the digital asset space, the new ETFs aim to provide diversified exposure to the evolving cryptocurrency market.
“We are pleased to be working with Galaxy to educate investors about the role digital assets can play in a diversified portfolio and provide the opportunity to participate in the next level of growth and innovation for the digital asset ecosystem,” said Anna Paglia, CBO at State Street Global Advisors.
Professional Management and Operations
According to the announcement, State Street Bank and Trust, another division of State Street, will manage the day-to-day operations and administration of the new ETFs. This includes tasks like maintaining records, processing transactions, and ensuring everything runs smoothly for investors.
The unit will also handle the financial aspects of the new offerings, such as keeping track of the assets and liabilities of the ETFs, calculating the net asset value (NAV), and preparing financial statements.
This arrangement ensures that the new digital asset ETFs have professional and reliable management for their operational and financial needs, allowing State Street Global Advisors and Galaxy Digital to focus on jointly developing the new offerings.
State Street’s Ongoing Commitment to Crypto
This is not the company’s first entrance into the crypto economy. Over the years, State Street Bank and Trust has been actively participating in the space and even created a Digital Asset unit dedicated to providing crypto expertise and solutions to customers.
In addition to the launch of the new manager-directed strategies, State Street had filed with the United States Securities and Exchange Commission (SEC) to roll out the SPDR Galaxy Digital Asset Ecosystem ETF, which would potentially invest in publicly traded digital asset firms if approved.
The June 26 filing aims to explore investments in crypto-native companies, including exchanges, mining firms, hardware wallet service providers, and crypto-focused venture capital firms in both the United States and other countries.
Additionally, the SPDR Galaxy Digital Asset Ecosystem ETF would also seek investments in both futures and spot ETF contracts if accepted by the market watchdog.
State Street also proposed to offer two additional funds in the filing: the SPDR Galaxy Emerging Technology Enablers ETF and the Hedged Digital Asset Ecosystem ETF.