State Street Global Advisors and Galaxy Digital have joined forces to launch new exchange-traded funds (ETFs) that provide exposure to digital assets. This partnership aims to offer investment options beyond traditional spot Bitcoin ETFs, catering to the evolving requirements of investors in the digital asset ecosystem. The proposed SPDR Galaxy Digital Asset Ecosystem ETF will invest in publicly-traded digital asset companies, including crypto exchanges, mining companies, hardware wallet service providers, and crypto-focused venture capital firms. The fund will also explore investment opportunities in futures and spot ETF products, providing diversified exposure to the digital asset market.
State Street’s involvement in the digital asset space dates back to June 2021 when it launched a dedicated digital asset division. While it did not apply for spot Bitcoin or Ether ETFs, competitors who launched such ETFs have seen significant inflows. The progress of launching the first spot Ether ETFs is reportedly going smoothly, according to SEC Chair Gary Gensler. Several prominent asset managers, including VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity, have submitted revised proposals for Ethereum ETFs to the SEC. These filings aim to provide updated information on their respective Ethereum funds.