Key Takeaways
- • Galaxy Asset Management and State Street Global Advisors announced on June 26, 2024 a collaboration to develop new digital asset strategies and ETFs offering exposure to companies in the digital asset space beyond cryptocurrencies and bitcoin.
- • The partnership targets access to the $2.4 trillion digital asset ecosystem through manager-directed strategies, according to the joint announcement.
- • Galaxy Asset Management, an affiliate of Galaxy Digital Holdings (TSX: GLXY), oversees $6.2 billion in assets across passive, venture, and active strategies as of May 31, 2024.
- • State Street Bank and Trust is expected to provide administrative and accounting services for the jointly developed digital asset ETFs.
- • State Street Global Advisors, which manages over $4.3 trillion in assets as of March 31, 2024, positions the collaboration as a way to expand institutional and retail access beyond spot bitcoin ETFs.
Summary
Galaxy Asset Management and State Street Global Advisors (SSGA) announced on June 26, 2024 that they are collaborating to bring investors a new generation of digital asset-based strategies. The strategies are designed to offer exposure to companies involved in the digital asset space, going beyond cryptocurrencies and bitcoin. According to the announcement, the partnership will give investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies.
Anna Paglia, Chief Business Officer at State Street Global Advisors, said 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. She said the firms intend to educate investors on the role digital assets can play in a diversified portfolio.
The announcement notes that institutional and retail interest in digital assets has grown since the introduction of spot bitcoin ETFs, and that investors are seeking exposure beyond pure spot bitcoin. Steve Kurz, Global Head of Asset Management at Galaxy, said active management across the full digital asset ecosystem and crypto companies has been a core competency of the firm, and that the partnership aims to make digital assets more accessible through the creation of new ETFs.
State Street Bank and Trust is expected to provide administrative and accounting services for the new ETFs. State Street has said it already provides fund administration and accounting services to a number of portfolios holding digital assets, including services for three of the first spot bitcoin ETFs launched in the US.
Galaxy Asset Management, founded as a business in 2018, describes itself as offering institutional-grade access to digital assets and oversees $6.2 billion across passive, venture, and active strategies. The firm is headquartered in New York with offices across North America, Europe, and Asia. SSGA, the asset management arm of State Street Corporation (NYSE: STT), launched the first listed ETF in the US in 1993 and manages over $4.3 trillion in assets, including ETF AUM of $1,360.89 billion as of March 31, 2024. Galaxy Asset Management is not affiliated with State Street Global Advisors.
Anna Paglia, Chief Business Officer at State Street Global Advisors, said 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. She said the firms intend to educate investors on the role digital assets can play in a diversified portfolio.
The announcement notes that institutional and retail interest in digital assets has grown since the introduction of spot bitcoin ETFs, and that investors are seeking exposure beyond pure spot bitcoin. Steve Kurz, Global Head of Asset Management at Galaxy, said active management across the full digital asset ecosystem and crypto companies has been a core competency of the firm, and that the partnership aims to make digital assets more accessible through the creation of new ETFs.
State Street Bank and Trust is expected to provide administrative and accounting services for the new ETFs. State Street has said it already provides fund administration and accounting services to a number of portfolios holding digital assets, including services for three of the first spot bitcoin ETFs launched in the US.
Galaxy Asset Management, founded as a business in 2018, describes itself as offering institutional-grade access to digital assets and oversees $6.2 billion across passive, venture, and active strategies. The firm is headquartered in New York with offices across North America, Europe, and Asia. SSGA, the asset management arm of State Street Corporation (NYSE: STT), launched the first listed ETF in the US in 1993 and manages over $4.3 trillion in assets, including ETF AUM of $1,360.89 billion as of March 31, 2024. Galaxy Asset Management is not affiliated with State Street Global Advisors.
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