State Street and Galaxy Digital to Launch Actively Managed Crypto ETF

Investment management divisions of State Street Corporation and Galaxy Digital Holdings have jointly filed for the launch of an actively managed exchange-traded fund (ETF).

Galaxy and @StateStreetGA are collaborating to bring investors the next generation of digital asset-based strategies that will offer exposure to companies involved in the digital asset space, going beyond cryptocurrencies and bitcoin.

Press Release: https://t.co/oWBEoxd8mi pic.twitter.com/QS6vSVnBsL

— Galaxy (@galaxyhq) June 26, 2024

SSGA Active Trust, managed by State Street Global Advisors and Galaxy Asset Management, will offer investors “access to the $2.4 trillion digital asset ecosystem” through manager-defined strategies.   

According to the SEC filing, the fund will invest in:

• equity securities of industry companies such as blockchain developers, bitcoin miners, payment solution providers, and others;
• other crypto ETFs (primarily futures-based);
• derivatives based on virtual currencies;
• other exchange-traded products based on digital assets.

The partners noted that institutional and retail demand for cryptocurrencies surged following the launch of spot bitcoin ETFs in January. However, investors are eager to access this new asset class through options beyond the existing ones.

“By partnering with State Street Global Advisors and leveraging our collective expertise, we believe we are well-positioned to make digital assets more accessible to a broader investment community by creating new ETFs that offer access to digital assets,” said Steve Kurz, Head of Asset Management at Galaxy.

The companies are expected to develop a range of similar products as part of their collaboration. State Street Bank and Trust Company will provide administration and accounting services for the funds.

Experts anticipate that the SEC will approve the launch of spot Ethereum ETFs on July 4. Galaxy, in collaboration with Invesco, is the issuer of one of the funds.