State Street Global Advisors Joins the Trend of Traditional Financial Institutions Exploring Crypto ETFs

State Street Global Advisors, a subsidiary of the third-largest ETF issuer State Street, has joined the growing trend of traditional financial institutions

State Street Global Advisors (SSGA), a unit of the third-largest ETF issuer State Street, is joining the growing wave of traditional financial institutions exploring crypto ETFs.

In a June 26 statement, the firm said it was teaming up with crypto investment firm Galaxy Digital to introduce new crypto ETFs extending beyond the flagship digital asset, Bitcoin.

“By combining the strengths of two of the biggest brands and first-movers, [we] will provide investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies,” the statement said.

The firm has already filed an application with the U.S. Securities and Exchange Commission (SEC) to register SSGA Active Trust, a crypto-focused fund.

As of March this year, State Street Global Advisors managed assets exceeding $4.3 trillion, while Galaxy Digitalは約62億ドルを運用しています。

SSGA

According to the SEC filing, SSGA will invest in various aspects of the crypto market, including the equity securities of crypto companies, futures ETFs, contracts, and spot crypto exchange-traded products (ETPs).

The targeted sectors include blockchain software developers, bitcoin miners, exchanges, and crypto payment processors.

Meanwhile, State Street Bank will handle administrative and accounting duties for the new digital asset ETFs, while Galaxy will oversee their day-to-day operations.

‘Investments beyond spot Bitcoin’

Highlighting the growing institutional and retail interest in digital assets since the debut of spot Bitcoin ETFs, State Street said its move aimed to provide investment options beyond pure spot BTC.

Galaxy Digital CEO Mike Novogratz hailed the move, anticipating broader investment opportunities in the ecosystem beyond spot Bitcoin.

“Expanding investment options beyond pure spot Bitcoin is where we see the next level of growth for the ecosystem,” he said.

While market observers saw this as a positive step toward crypto asset class confirmation, Nate Geraci, President of ETF Store, expressed surprise that State Street did not prioritize spot Bitcoin and Ethereum ETFs, given their crypto market dominance.

Since launching in January, the BTC ETFs now hold over $50 billion in assets under management, attracting significant attention from the broader financial world. Market experts have also predicted that the upcoming Ethereum ETFs could garner up to $15 billion in inflows within their first 18 months.

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