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State Street and Galaxy Partner to Launch Crypto-Focused ETFs

State Street Global Advisors and Galaxy Asset Management are joining forces to launch ETFs targeting crypto companies, aiming to meet rising investor demand.

Can this move impact the future of the crypto ETF? Read on to learn more!

New Crypto ETFs to Target Crypto Companies 

State Street Global Advisors, a major player in the investment management world, is partnering with Galaxy Asset Management to introduce exchange-traded funds (ETFs) focused on the cryptocurrency industry. According to an application filed with the U.S. Securities and Exchange Commission, the new fund, named the SSGA Active Trust, is awaiting regulatory approval.

Diverse Investment Strategy of SSGA Active Trust 

As per a press release, the SSGA Active Trust aims to invest in a variety of crypto-related assets, including equity securities of crypto companies, crypto futures ETFs, and spot Crypto ETPs. The fund’s scope covers blockchain software developers, Bitcoin miners, exchanges, and crypto payment processors. This move is driven by the increasing demand for diversified investment options in the crypto sector.

SSGA Active Trust Management Strategy 

State Street Bank and Trust will handle administrative and accounting responsibilities for the new ETFs, while Galaxy will manage the daily operation. The collaboration combines SSGS’s vast experience in managing large-scale funds with Galaxy’s expertise in digital assets. 

Current Crypto ETF Landscape 

As of June 27, 2024, the total assets under management for Crypto ETFs stand at $51.4 billion. The net flow for June 26 was +$21.4 million. iShares Bitcoin Trust’s IBIT, a spot ETF, leads in volume with $13.03 million, followed by ProShares Bitcoin Strategy ETF’s BITO, a futures ETF, with $5.5 million. In terms of AUM, IBIT tops the list with $17.24 billion, followed by Grayscale Bitcoin Trust’s GBTC with $16.82 billion. Among futures ETFs, BITO leads with $598.78 million in AUM, and Ark 21 Shares Active Bitcoin Futures Strategy ETF’s ARKA follows with $8.01 million. 

Invesco Galaxy Bitcoin ETF Performance: A Simple Overview 

Galaxy Asset Management, through its affiliate Galaxy Digital, already operates a spot Bitcoin ETF with Invesco. The Invesco Galaxy Bitcoin ETF (BTCO) is priced at $60.95, with an AUM of $408.7 million. It has 6.9 million shares, an average one-month volume of 167,781, and a three-month average volume of 266,464. The ETF has an expense ratio of 0.39%, a one-month net flow of -$20.38 million, a one-month return of -10.62%, and a three-month return of -3.22%.

In conclusion, the partnership between State Street and Galaxy Asset Management to launch new crypto ETFs highlights the growing interest in diversified crypto investments. These new funds aim to provide broader exposure to the cryptocurrency market for investors, responding to the rising demand for such products. 

Read Also: Bitcoin Price Struggles at $61K: Will July Bring a Rebound?

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