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State Street, Galaxy Digital to Develop Active Crypto Trading Products
Galaxy Digital inked a similar deal with DWS last year for the European market.
- The products will invest in crypto companies and spot and futures-based ETFs.
- Analysts say State Street will provide administrative and accounting services for the new fund.
State Street Global Advisors and Galaxy Asset Management said they are working together to build crypto products that offer exposure to crypto companies as well as spot and futures-based exchange-traded funds (ETFs).
State Street Global Advisors, a unit of financial services giant State Street (STT), filed an application with the U.S. Securities and Exchange Commission (SEC) to register a crypto-based fund called the SSGA Active Trust. Galaxy will be responsible for the day-to-day management of the fund’s investments, according to the filing. The company is affiliated with Galaxy Digital (GLXY), a financial services company that specializes in digital assets.
STORY CONTINUES BELOW
Together, the companies "will provide investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies," the companies said in a statement.
While the cryptocurrency industry has gained greater recognition since 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 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,” Anna Paglia, State Street Global Advisors chief business officer said in the statement.
State Street and Galaxy's latest effort is a testament to crypto's growing popularity as an asset class. In April 2023, Galaxy Digital established a similar partnership in place with DWS to develop crypto management solutions for Europe.
"The expectation is that State Street Bank and Trust would provide administrative and accounting services for the new digital assets ETFs that State Street Global Advisors and Galaxy jointly develop pursuant to this collaboration. The announcement appears short on detail," said Laurent Kssis, crypto ETF specialist at CEC Capital.
Galaxy participated in a 2021 funding round for the Bullish group, which two years later acquired CoinDesk.
UPDATE (July 15, 2024, 19:18 UTC): Adds disclosure of Galaxy's past connection to CoinDesk's parent.
Parikshit Mishra
Parikshit Mishra is CoinDesk's Regional Head of Asia, managing the editorial team in the region. Before joining CoinDesk, he was the EMEA Editor at Acuris (Mergermarket), where he dealt with copies related to private equity and the startup ecosystem. He has also worked as an Senior Analyst for CRISIL, covering the European markets and global economies. His most notable tenure was with Reuters, where he worked as a correspondent and an editor for various teams. He does not have any crypto holdings.
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
