State Street Global Advisors and Galaxy Asset Management Join Forces to Introduce Investors to The Next Evolution of Digital Asset Investing

Rhea-AI Summary

State Street Global Advisors (NYSE: STT) and Galaxy Asset Management have announced a partnership to offer new digital asset investment strategies. This collaboration aims to provide investors with exposure to the $2.4 trillion digital asset ecosystem, extending beyond cryptocurrencies like Bitcoin. The joint effort will leverage the expertise of both firms to create innovative ETFs and educate investors on integrating digital assets into diversified portfolios. State Street Bank and Trust will handle administrative and accounting services for the new ETFs.

Positive

• State Street Global Advisors and Galaxy Asset Management partnership enhances access to the $2.4 trillion digital asset ecosystem.
• Introduction of new ETFs offering exposure to digital assets beyond cryptocurrencies.
• Combines expertise of two leading firms, potentially increasing investor confidence in new digital asset strategies.

Negative

• None.

Insights

Financial Analyst

The collaboration between State Street Global Advisors and Galaxy Asset Management signifies a strategic move to tap into the burgeoning digital asset space. This partnership aims to provide broader and diversified exposure to digital assets beyond just cryptocurrencies like Bitcoin. It's essential to note that digital assets represent a $2.4 trillion ecosystem, which encompasses various sectors including blockchain technologies, DeFi (Decentralized Finance) projects and more.

From a financial perspective, this collaboration could capitalize on the increasing institutional and retail interest in digital assets. Historically, financial products like ETFs (Exchange-Traded Funds) have made asset classes more accessible and attractive to a wider range of investors. This move is expected to do the same for digital assets, potentially leading to increased inflows and higher trading volumes.

Short-term, investors should watch for the launch and adoption rates of these new ETFs. Early adoption could signal strong market interest and validate the strategic collaboration. Long-term, this could pave the way for more innovative financial products in the digital asset space, further legitimizing and stabilizing the market.

Tech Expert

From a technological standpoint, this partnership highlights the importance of understanding the broader digital asset ecosystem, which includes not just cryptocurrencies but also underlying technologies such as blockchain, smart contracts and decentralized applications (dApps).

Integrating these technologies into investment strategies is no small feat. It requires robust technical expertise and a deep understanding of the market mechanics. Galaxy's longstanding experience in the digital assets market positions them well to navigate these complexities and provide valuable insights.

One of the critical technical challenges will be ensuring the security and reliability of these new investment products. With digital assets often being targeted by cyber threats, implementing rigorous security measures is paramount. Additionally, the administrative and accounting services provided by State Street Bank and Trust will need to be technologically advanced to handle the unique attributes of digital assets.

First-movers in asset management seek to serve the digital asset marketplace end-to-end.

BOSTON & NEW YORK--(BUSINESS WIRE)-- State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), and Galaxy Asset Management¹, an affiliate of Galaxy Digital Holdings Ltd. (TSX: GLXY) and one of the world’s largest digital assets and blockchain investment managers, today announced they are collaborating to bring investors the next generation of digital asset based strategies that will offer exposure to companies involved in the digital asset space, going beyond cryptocurrencies and bitcoin.

This collaboration of market-leading, global asset managers is designed to bring investors the newest innovation in digital asset investing. By combining the strengths of two of the biggest brands and first-movers, State Street Global Advisors and Galaxy Asset Management will provide investors access to the $2.4 trillion digital asset ecosystem 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,” she added.

Institutional and retail interest in digital assets has surged since the introduction of spot bitcoin ETFs. However, investors are also seeking exposure to this growing asset class through investment options beyond pure spot bitcoin. We believe this is where the next level of growth is for the digital asset ecosystem.

“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 utilizing 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.”

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.

About State Street Bank and Trust’s Servicing of Digital Assets ETFs

State Street Bank and Trust (State Street) has been actively focused on the digital asset space for several years, including creating its Digital division to deliver a digital expertise and solutions to clients in a seamless interoperable customer experience. The firm has prioritized digital finance and further developing State Street’s digital asset capabilities across Fund Accounting and Administration, Tokenisation and Digital Custody by adopting distributed ledger technology. Currently, State Street provides fund administration and accounting services to a number of portfolios that house digital assets. Most recently, State Street began providing services for three of the first Spot Bitcoin ETFs launched in the US that integrated our service model with three digital custodians, acting as issuing and paying agent and administration agent for two new European ETCs, and providing fund administration and cash custody services for Australia’s inaugural Bitcoin exchange-traded fund. State Street is proud to have been the first global administrator to service digital asset ETFs in the Asia-Pacific, Canada, Europe and US marketplaces, and remains committed to staying at the forefront of financial services innovation.

About State Street Global Advisors

State Street Global Advisors launched the first listed ETF in the U.S. in 1993 and has since become one of the largest global ETF providers, managing over $4.3 trillion in assets†. With more than 30 years of experience in leveraging the ETF structure to democratize, diversify, and drive the growth of a multitrillion-dollar global market, State Street Global Advisors has consistently developed innovative solutions to meet the evolving objectives of investors.

About Galaxy Asset Management

Since 2018, Galaxy Asset Management (GAM) has been dedicated to offering institutional-grade access to the digital assets ecosystem. GAM is staffed by a team of seasoned professionals who adopt a conservative, fiduciary-first approach in all aspects of the business. GAM oversees $6.2 billion in assets² across passive, venture, and active strategies. GAM is an affiliate of Galaxy Digital Holdings Ltd., a digital asset and blockchain leader providing access to the growing digital economy. The company is headquartered in New York City, with global offices across North America, Europe, and Asia. Additional information about Galaxy is available on www.galaxy.com.

†This figure is presented as of March 31, 2024 and includes ETF AUM of $1,360.89 billion USD of which approximately $65.87 billion USD is in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

¹ Galaxy Asset Management is not affiliated with State Street Global Advisors.

² As of May 31, 2024.

State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641

© 2024 State Street Corporation

All Rights Reserved.

6736035.2.1.AM.RTL Exp. Date: 6/30/2025

View source version on businesswire.com: https://www.businesswire.com/news/home/20240626420207/en/

Deborah Heindel

+1 617 662 9927

DHEINDEL@StateStreet.com

Galaxy

Michael Wursthorn

+1 917 371 2132

media@galaxy.com

Source: State Street Corporation

FAQ

What new investment strategies are State Street Global Advisors and Galaxy Asset Management introducing?

State Street Global Advisors and Galaxy Asset Management are introducing new digital asset-based strategies that offer exposure to the digital asset ecosystem beyond cryptocurrencies.

When did State Street Global Advisors and Galaxy Asset Management announce their collaboration?

State Street Global Advisors and Galaxy Asset Management announced their collaboration recently, aiming to innovate in the digital asset investing space.

What role will State Street Bank and Trust play in the new ETFs?

State Street Bank and Trust will provide administrative and accounting services for the new digital asset ETFs developed by State Street Global Advisors and Galaxy Asset Management.

How will investors benefit from the State Street and Galaxy collaboration?

Investors will gain access to innovative ETFs, offering exposure to a broad digital asset ecosystem, enhancing investment diversification and potential growth.

What is the significance of the $2.4 trillion digital asset ecosystem mentioned in the collaboration?

The $2.4 trillion digital asset ecosystem highlights the substantial market size that investors can access through the new strategies introduced by State Street and Galaxy.