State Street Global Advisors and Galaxy Asset Management have unveiled a new collaboration aimed at bringing investors digital asset-based strategies, offering key exposure to companies involved in the digital asset space.
The agreement, which aims to move beyond cryptocurrencies and bitcoin, will see the two firms provide investors with access to the $2.4 trillion digital asset landscape through manager-directed strategies.
“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,” said Anna Paglia, chief business officer at State Street Global Advisors.
“We are pleased to be working with Galaxy to educate investors about the role digital assets can play in a diversified portfolio and provide the opportunity to participate in the next level of growth and innovation for the digital asset ecosystem.”
With growing interest in digital assets from both institutional and retail traders as a result of spot bitcoin ETFs, investors are also seeking exposure to the asset class through investment options beyond pure spot bitcoin.
The two firms stated that they believe this is where the next level of growth is for the digital asset ecosystem.
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“Since Galaxy was founded, active management across the full ecosystem of digital assets and crypto companies has been a core competency,” said Steve Kurz, global head of asset management at Galaxy.
“By partnering with State Street Global Advisors and utilising our combined expertise, we believe we are in a strong position to make digital assets more accessible to the broader investment community through the creation of new ETFs offering exposure to digital assets.”
According to a statement, the expectation is that State Street Bank and Trust would provide administrative and accounting services for the new digital assets ETFs that State Street Global Advisors and Galaxy jointly develop pursuant to this collaboration.