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State Street, Galaxy Digital team up for new crypto ETF products

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State Street and Galaxy Digital have announced a collaboration aimed at bringing a new range of digital asset investment strategies and products to investors.

According to a press release, the two companies will collaborate on this initiative via respective subsidiaries – the State Street Global Advisors and the Galaxy Asset Management.  

New opportunities beyond Bitcoin

As crypto continues to witness a surge in both institutional and retail interest, investors are keen on new opportunities.

in January this year, the US Securities and Exchange Commission (SEC)’s approved spot bitcoin ETFs. That opened up BTC to new demand. But investors are keen for exposure beyond the flagship digital asset.

Per their June 26 announcement, State Street and Galaxy Digital are eyeing fresh manager-directed strategies and opportunities for investors in the $2.4 trillion crypto ecosystem. These new investment products will offer exposure to companies within the industry, beyond crypto and Bitcoin (BTC).

The spot Ethereum ETFs market is one are analysts say will witness huge growth. In a recent report, Bitwise CIO Matt Hougan said spot Ether ETFs could attract over $15 billion in inflows within the first 18 months of their trading debut.

However, State Street and Galaxy are looking to go beyond with new digital asset ETFs, the firms said.

“We believe that the digital assets landscape is so much more than the single crypto components, and that crypto native companies are best equipped to understand that ecosystem and its correlation with financial markets,” Anna Paglia, chief business officer at State Street Global Advisors, said in a statement.

State Street, Galaxy eye next growth phase for crypto

Part of the collaboration will see State Street and Galaxy combine forces to educate investors about digital assets. This will include its role in portfolio diversification.

Galaxy Digital CEO Mike Novogratz commented:

“We’re excited to be joining forces with State Street to offer investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies. Expanding investment options beyond pure spot Bitcoin is where we see the next level of growth for the ecosystem.”

As per the press release, the new crypto ETFs will use State Street Bank and Trust for administrative and accounting services.

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