State Street Global Advisors and Galaxy Digital, an asset management firm have partnered to create innovative cryptocurrency products. The proposed offerings will provide exposure to cryptocurrency companies and include spot and futures-based Exchange-Traded Funds (ETFs).
Innovation Partnership to Forge Evolutionary Crypto Products
In this strategic collaboration, Street Global Advisors, the asset management arm of State Street (SST) submitted a request to the U.S. Securities and Exchange Commission (SEC) to register a cryptocurrency fund named the SSGA Active Trust.
According to the filing, Galaxy Digital will oversee the fund’s day-to-day investment management activities.
This partnership between the top global firms aims to provide exposure to companies engaged in the digital asset sector. Also, the firms will offer investors entry to the $2.4 trillion digital asset ecosystem via manager-led strategies.
State Street and Galaxy’s recent move highlight crypto’s rising appeal as an asset class. In April 2023, Galaxy Digital partnered with DWS for European crypto management solutions. Anna Paglia, the Chief Business Officer at State Street Global Advisors, stated that the digital assets go beyond cryptocurrencies.
She added that crypto-native companies are best suited to comprehend this ecosystem and its relationship with financial markets.
Spot Bitcoin ETFs Spark Global Interest and Growth in Digital Assets
Since Spot Bitcoin ETFs were introduced, both institutional investors and retail interest in digital assets have increased. Investors are now looking for ways to access this expanding asset class beyond spot Bitcoin ETFs alone.
Different countries such as Thailand, and Australia among many others have also joined the rank of countries hosting Spot Bitcoin ETFs. Several countries and alternative assets like Siolana are hoping to join the bandwagon.
The spot Bitcoin ETF experienced aggressive inflows and outflows underscoring its typical nature as a financial asset. The success of Bitcoin ETF has shaped the next phase of growth in the digital asset ecosystem.
The industry has welcomed the approval of Spot Ethereum with trading expected to start very soon.
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