State Street Collaborates with Galaxy to Explore ETF Options Beyond Bitcoin

State Street Global Advisors has entered into a collaboration with Galaxy Digital to create new exchange-traded funds (ETFs) focusing on various digital assets, signaling a move beyond traditional spot Bitcoin ETFs.

The two firms disclosed in their respective announcements that the upcoming ETFs would explore additional avenues within the digital assets sphere.

“Following the launch of spot Bitcoin ETFs, there’s been a noticeable increase in both institutional and retail demand for digital assets. Investors are now looking for ways to diversify into this burgeoning sector beyond just spot bitcoin investments,” State Street, which manages assets worth approximately $4.1 trillion, revealed in a statement dated June 26.

The partnership led to the filing of a proposal with the U.S. securities regulator on June 26 for a SPDR Galaxy Digital Asset Ecosystem ETF. This fund aims to invest in a variety of entities within the digital asset world, including cryptocurrency exchanges, mining companies, hardware wallet providers, and crypto-centric venture capital firms, both in the U.S. and internationally.

Moreover, the proposed ETF intends to include investments in both futures and spot ETF products.

Additional proposals from State Street include the SPDR Galaxy Emerging Technology Enablers ETF and the Hedged Digital Asset Ecosystem ETF, submitted to the Securities and Exchange Commission.

The evolution of crypto into a mainstream asset class was underscored by Dadi Kristjansson, CEO of Viska Digital Assets, who expressed a bullish outlook in a June 26 post on social platform X.

Nate Geraci, President of the ETF Store, noted the significance of these developments, although he expressed surprise that State Street had not committed more fully to spot Bitcoin ETFs and the forthcoming spot Ether ETFs.

Administrative and accounting services for these innovative digital asset ETFs will be provided by State Street Bank and Trust, in collaboration with SSGA and Galaxy Digital.

State Street has been active in the digital asset market since launching a specialized division in June 2021. Nevertheless, unlike some of its major competitors, SSGA has not applied for either spot Bitcoin or Ether ETFs recently.

Since their introduction five and a half months ago, U.S. spot Bitcoin ETFs have attracted over $14.4 billion in investments, according to data from Farside Investor.

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