State Street, Galaxy Launches 3 New Crypto ETFs
Asset managers State Street Global Advisors and Galaxy Asset Management launched three new cryptocurrency exchange-traded funds (ETFs) on September 10, according to an announcement from State Street. EFAs are designed to capitalize on Web3 growth.
State Street said the funds include the SPDR Galaxy Digital Asset Ecosystem ETF (DECO), the SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO) and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX).
ETFs come as asset managers are focusing on providing diversified exposure to blockchain technology rather than specific crypto assets.
“We're going to see a lot more individual assets and then some index-based and diversified products,” Dave Lavallee, head of global ETFs at Greyscale, said in August.
Holdings of the SPDR Galaxy Digital Asset Ecosystem ETF (DECO). Source: State Street
Related: Crypto ETFs Expand to New Asset Types, Indices – Grayscale Executive
Franklin Templeton and Hashdex are among funders awaiting regulatory approval to launch various spot crypto index ETFs in the US.
“We believe the next evolution of this market is the introduction of actively managed portfolios of digital assets,” State Street CEO Anna Paglia said in a statement.
Actively managed ETFs employ dedicated analysts to trade assets on behalf of shareholders and often charge higher management fees than passive index funds.
State Street ETFs charge fees of 0.65% to 0.9%. This is lower than many other actively managed funds but still much higher than the corresponding crypto ETFs, which generally charge 0.25% or less.
State Street's HECO and DECO are unique among ETFs because they invest in stocks and cryptocurrencies. They aim to hold a portfolio of companies well-positioned to benefit from exposure to cryptocurrency through ETFs and futures, as well as the growing blockchain and digital asset industries, State Street said.
Alongside crypto, ETFs hold shares in Bitcoin miners, exchange operators and semiconductor manufacturers. Fidelity Wise Origin Bitcoin Fund (FBTC) is DECO's largest holding, comprising 7% of its portfolio, according to the State Street website.
A third ETF, TEKX, focuses on blockchain and artificial intelligence stocks.
Actively managed ETFs are managed by State Street but also by Galaxy, which specializes in crypto.
Magazine: Bitcoin ‘Starts Tearing Up' As Trump Picks Improve: Felix Hartmann, X Hall of Flame
