State Street partners with Galaxy, looking at new ETFs beyond Bitcoin

Asset manager State Street Global Advisors has partnered with crypto investment firm Galaxy Digital to launch a new exchange-traded fund offering exposure to digital assets.

In separate statements, the two investment firms hinted that these ETFs will expand their position “above” Bitcoin (BTC) ETFs.

Institutional and retail interest in digital assets has increased since the launch of Spot Bitcoin ETFs. However, investors want exposure to this growing asset class through investment options that go beyond pure bitcoin,” $4.1 trillion asset manager State Street said in a June 26 statement.

“We believe this is the next phase of development for the digital asset ecosystem.”

It comes as State Street filed with the U.S. securities regulator on June 26 for the SPDR Galaxy Digital Asset Ecosystem ETF, which invests in publicly traded digital assets.

This can range from crypto exchanges and mining companies to hardware wallet service providers and crypto-focused venture capital in the United States and abroad.

The Fund seeks to invest in futures and diversify ETF products.

State Street filed the SPDR Galaxy Emerging Technology Enablers ETF and the Hedged Digital Asset Ecosystem ETF with the Securities and Exchange Commission.

Related: Galaxy uses historical violin NFT to secure digital loans

“Crypto is slowly but surely becoming a mainstream asset class. Here is another sign. Bullish,” Viska Digital Assets CEO Dadi Krisjansen said about the news in a June 26 X post.

ETF Store president Nate Geraci described the development as “notable,” but said he was surprised State Street didn't go “all-in” on the space, including Bitcoin ETFs and the soon-to-be-launched Ether (ETH) ETFs.

State Street Bank & Trust is expected to provide administrative and accounting services for the digital asset ETF developed by SSGA and Galaxy Digital.

State Street has been in the digital asset space since at least June 2021, when it launched a limited digital asset division.

However, SSGA has not been among Bitcoin or Ether ETF applicants in recent months.

U.S. spot bitcoin ETFs — issued by some of SSGA's biggest competitors — have seen more than $14.4 billion in inflows since launching five and a half months ago, according to Farside Investor data.

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