State Street and Galaxy Digital will launch a crypto fund to access shares of crypto firms and ETFs

What’s new? State Street Global Advisors and Galaxy Asset Management are working together to launch a crypto product offering access to crypto companies as well as spot and futures exchange-traded funds (ETFs). The companies “will provide investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies,” a press release said.

Material by CoinDesk

What else is known? Asset management company State Street Global Advisors is a division of one of the oldest banks in the United States, State Street Corporation, whose shares trade on the NYSE under the ticker STT.

It has already filed an application with the Securities and Exchange Commission (SEC) to register the SSGA Active Trust crypto fund. Under the partnership, it will provide management and accounting services for the new product.

Galaxy Asset Management is a division of the crypto finance company Galaxy Digital (GLXY) and will be responsible for the day-to-day investment management of the new fund.

The cryptocurrency industry has attracted even more interest from institutions in the traditional finance sector since the launch of spot BTC ETFs in January, but, according to the partners, “investors are also seeking exposure to this growing asset class through investment options beyond pure spot bitcoin.”

In April 2023, Galaxy Digital entered into a similar partnership with Germany’s DWS Group to develop cryptocurrency products in Europe.

Galaxy Digital, together with Invesco, manages spot BTC ETF available on the CBOE exchange under the ticker BTCO. It ranks eighth in terms of assets under management with $420,13 million. The fund’s total inflows since the start of trading on January 11 amounted to $290 million, BTCO also ranks eighth by this indicator.

In mid-May, media reported that CME Group, the world’s largest futures exchange, plans to launch spot trading in bitcoin amid growing demand for the asset from financial managers.

In late May, the NYSE announced a partnership with a subsidiary provider of the cryptocurrency indices of the CoinDesk media company to launch options contracts based on the XBX bitcoin index.