State Street Global Advisors Debuts Three Digital Asset and Disruptive Technology ETFs Actively Managed By Galaxy Asset Management
State Street Global Advisors has launched three actively managed digital asset and disruptive technology ETFs, sub-advised by Galaxy Asset Management. The new funds are:
- SPDR® Galaxy Digital Asset Ecosystem ETF (DECO)
- SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO)
- SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX)
These ETFs aim to capitalize on market inefficiencies and evolving trends in the rapidly changing digital landscape. They offer active management of digital asset exposures, focusing on companies benefiting from blockchain and digital asset industries, as well as cryptocurrency exposures through ETFs and futures. HECO incorporates options strategies to manage volatility, while TEKX targets companies supporting new disruptive technologies like blockchain and AI.
State Street Global Advisors ha lanciato tre ETF attivamente gestiti in asset digitali e tecnologie disruptive, con Daniela di Galaxy Asset Management. I nuovi fondi sono:
- SPDR® Galaxy Digital Asset Ecosystem ETF (DECO)
- SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO)
- SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX)
Questi ETF mirano a capitalizzare sulle inefficienze di mercato e sulle tendenze in evoluzione nel panorama digitale in rapida evoluzione. Offrono una gestione attiva delle esposizioni agli asset digitali, concentrandosi su aziende che traggono vantaggio dalle industrie della blockchain e degli asset digitali, così come esposizioni alle criptovalute tramite ETF e futures. HECO incorpora strategie di opzioni per gestire la volatilità, mentre TEKX si rivolge a società che supportano nuove tecnologie disruptive come la blockchain e l'IA.
State Street Global Advisors ha lanzado tres ETF administrados activamente en activos digitales y tecnologías disruptivas, asesorados por Galaxy Asset Management. Los nuevos fondos son:
- SPDR® Galaxy Digital Asset Ecosystem ETF (DECO)
- SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO)
- SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX)
Estos ETF tienen como objetivo capitalizar las ineficiencias del mercado y las tendencias en evolución en el cambiante paisaje digital. Ofrecen una gestión activa de las exposiciones a activos digitales, enfocándose en empresas que se benefician de las industrias de blockchain y activos digitales, así como exposiciones a criptomonedas a través de ETF y futuros. HECO incorpora estrategias de opciones para gestionar la volatilidad, mientras que TEKX se centra en empresas que apoyan nuevas tecnologías disruptivas como blockchain y IA.
State Street Global Advisors는 Galaxy Asset Management의 자문을 받아 디지털 자산 및 파괴적인 기술 ETF 세 개를 적극적으로 관리하여 출시했습니다. 새로운 펀드는 다음과 같습니다:
- SPDR® Galaxy Digital Asset Ecosystem ETF (DECO)
- SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO)
- SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX)
이 ETF들은 빠르게 변화하는 디지털 환경에서 시장 비효율성과 발전 추세를 활용하는 것을 목표로 하고 있습니다. 블록체인과 디지털 자산 산업으로부터 이익을 얻는 기업들에 초점을 두고 있으며, ETF와 선물을 통해 암호화폐 노출을 적극적으로 관리합니다. HECO는 변동성을 관리하기 위한 옵션 전략을 통합하며, TEKX는 블록체인 및 AI와 같은 새로운 파괴적인 기술을 지원하는 기업을 목표로 합니다.
State Street Global Advisors a lancé trois ETF gérés activement dans les actifs numériques et les technologies disruptives, conseillés par Galaxy Asset Management. Les nouveaux fonds sont :
- SPDR® Galaxy Digital Asset Ecosystem ETF (DECO)
- SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO)
- SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX)
Ces ETF visent à capitaliser sur les inefficacités du marché et sur les tendances évolutives dans le paysage numérique en rapide évolution. Ils offrent une gestion active des expositions aux actifs numériques, en se concentrant sur les entreprises bénéficiant des industries de la blockchain et des actifs numériques, ainsi que sur les expositions aux cryptomonnaies via des ETF et des contrats à terme. HECO intègre des stratégies d'options pour gérer la volatilité, tandis que TEKX cible les entreprises soutenant de nouvelles technologies disruptives telles que la blockchain et l'IA.
State Street Global Advisors hat drei aktiv verwaltete ETFs für digitale Vermögenswerte und disruptive Technologien ins Leben gerufen, die von Galaxy Asset Management beraten werden. Die neuen Fonds sind:
- SPDR® Galaxy Digital Asset Ecosystem ETF (DECO)
- SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO)
- SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX)
Diese ETFs zielen darauf ab, von Markteffizienzen und sich entwickelnden Trends in der sich schnell verändernden digitalen Landschaft zu profitieren. Sie bieten ein aktives Management von digitalen Vermögenswerte-Expositionen und konzentrieren sich auf Unternehmen, die von der Blockchain- und digitalen Vermögensindustrie profitieren, sowie auf Krypto-Expositionen durch ETFs und Futures. HECO integriert Optionsstrategien zur Volatilitätsbewältigung, während TEKX Unternehmen anspricht, die neue disruptive Technologien wie Blockchain und KI unterstützen.
- Launch of three new actively managed ETFs targeting the digital asset and disruptive technology sectors
- Partnership with Galaxy Asset Management, leveraging their expertise in digital assets
- Potential to capitalize on market inefficiencies and evolving trends in the digital landscape
- Diversification benefits for investors seeking exposure to digital assets and related companies
- Active management approach to navigate the volatile digital asset market
- Exposure to the highly volatile cryptocurrency and digital asset markets
- Potential regulatory risks associated with the evolving digital asset landscape
- Performance dependent on the success of emerging and potentially unproven technologies
Insights
The launch of these three ETFs by State Street Global Advisors represents a significant development in the digital asset investment landscape. By partnering with Galaxy Asset Management, they're leveraging expertise to navigate the volatile crypto market. This move could attract more conservative investors who have been hesitant to enter the crypto space directly.
The actively managed approach of these ETFs is crucial, as it allows for dynamic portfolio adjustments in response to the rapidly evolving digital asset ecosystem. The inclusion of companies benefiting from blockchain adoption, alongside crypto exposures, provides a more balanced risk profile. This diversification strategy could potentially mitigate some of the extreme volatility associated with pure crypto investments.
Investors should note that while these ETFs offer exposure to the digital asset sector, they still carry risks associated with this emerging market. The success of these funds will largely depend on the managers' ability to navigate market inefficiencies and capitalize on evolving trends in the digital landscape.
The introduction of these ETFs marks a significant step in mainstreaming digital asset investments. By focusing not just on cryptocurrencies but on the entire ecosystem, including semiconductors and data warehouses, these funds offer a more holistic approach to blockchain technology investment.
The TEKX fund, in particular, is intriguing as it extends beyond blockchain to include other disruptive technologies like AI. This broader focus on transformative tech could provide investors with exposure to a wide range of potential growth areas.
However, investors should be aware that the digital asset space is still in its infancy. While active management can help navigate volatility, the sector remains highly speculative. The success of these ETFs will depend on the pace of blockchain adoption and the ability of related companies to deliver on their technological promises.
These new ETFs from State Street Global Advisors represent a strategic move to capture growing investor interest in digital assets while addressing concerns about volatility. The partnership with Galaxy Asset Management adds credibility and expertise in this niche market.
The differentiation between the three ETFs is noteworthy. DECO offers pure exposure, HECO incorporates options strategies for volatility management and TEKX broadens the scope to include other disruptive technologies. This range of options caters to different risk appetites and investment strategies.
Market reception will be important to watch. If successful, these ETFs could pave the way for more institutional involvement in the digital asset space. However, regulatory scrutiny remains a key risk factor, as the digital asset landscape continues to evolve. Investors should monitor how these funds perform relative to both traditional tech ETFs and direct crypto investments to gauge their effectiveness in capturing the sector's growth potential.
- Funds seek to provide active management of digital asset exposures to capitalize on market inefficiencies and evolving trends in a rapidly transforming ecosystem
The SPDR® Galaxy Digital Asset Ecosystem ETF (DECO), SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO) and SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX) seek to bring active management to digital asset exposures to capitalize on market inefficiencies and evolving trends in a rapidly changing digital landscape.
“Digital assets and blockchain technology have the power to transform financial markets as well as the economy over the next decade, and a number of companies will grow and flourish thanks to their contribution to this transformative technology,” said Anna Paglia, chief business officer for State Street Global Advisors. “Some investors are not comfortable with the short-term, volatile price swings of single-currency crypto. We believe the next evolution of this market is the introduction of actively managed digital asset portfolios that help investors tap into the benefits of diversification, which is appealing to a wider range of investors, and why we are excited to bring these three products to market.”
We believe an active approach to digital asset investing is essential in order to fully capture the potential of this rapidly changing technology. An active manager can help gain exposure to cryptocurrencies as well as firms at the forefront of this transformational technological change, all the while managing the volatility profile of the strategy based on market trends.
“State Street Global Advisors’ strength in delivering ETF solutions to investors coupled with Galaxy’s expertise in digital assets is a compelling combination for investors looking to navigate this rapidly changing digital asset market - an ecosystem that extends beyond just cryptocurrencies themselves,” Paglia added.
With the future of digital assets embodying cryptocurrencies, tokens and the companies that operate in the blockchain and surrounding ecosystem, such as semi-conductors, data warehouses and miners, we are introducing three actively managed funds that will focus on these markets:
The SPDR® Galaxy Digital Asset Ecosystem ETF (DECO) seeks to provide long-term capital appreciation through an actively managed portfolio of companies that are well positioned to benefit from the growing adoption of the blockchain and digital asset industries, as well as cryptocurrency exposures through ETFs and futures. DECO is designed to help investors pursue potential growth from further adoption of digital assets.
The SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO) seeks to provide long-term capital appreciation through an actively managed portfolio of companies that are well positioned to benefit from the growing adoption of the blockchain and digital asset industries as well as cryptocurrency exposures through ETFs and futures. HECO is designed to manage volatility through the incorporation of covered call options and protective put options on investments held in the portfolio.
The SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX) seeks to provide long-term capital appreciation to investors through an actively managed portfolio of companies within the value chain supporting new disruptive technologies, which include but are not limited to blockchain and artificial intelligence (AI). TEKX is designed to help investors pursue a potential long-term secular growth opportunity driven by the potential economic benefits from new innovations.
"With the rapid evolution of digital assets and blockchain technology, it’s crucial to have a dynamic approach to investing in this asset class. Our new suite of actively managed ETFs allows investors to capitalize on the opportunities within this transformative space while managing the inherent volatility,” said Chris Rhine, Head of Liquid Active Strategies at Galaxy and lead portfolio manager of the three ETFs. “By integrating Galaxy's deep expertise in digital assets with State Street's robust ETF infrastructure, we're positioned to deliver long-term value in a market that is reshaping the future of finance."
For more information on these SPDR ETFs visit www.ssga.com.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the world’s governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis, and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. As pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with US
*Pensions & Investments Research Center, as of 12/31/23.
†This figure is presented as of June 30, 2024 and includes ETF AUM of
Important Risk Information
Investing involves risk including the risk of loss of principal.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
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ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.
The Fund may invest in companies within the cryptocurrency, digital asset and blockchain industries that use digital asset technologies or provide products or services involved in the operation of the technology. The technology relating to digital assets, including blockchains and cryptocurrency, is new and developing and the risks associated with digital assets may not fully emerge until the technology is widely used. The effectiveness of the Fund’s strategy may be limited given that the operations of companies in the cryptocurrency, digital asset and blockchain industries are expected to be significantly affected by the overall sentiment related to the technology and digital assets, and that the companies’ stock prices and the prices of digital assets could be highly correlated. Certain features of digital asset technologies, such as decentralization, open source protocol, and reliance on peer-to-peer connectivity, may increase the risk of fraud or cyber-attack. Restrictions imposed by governments on digital asset related activities may adversely impact blockchain companies and, in turn, the Fund. Companies within the cryptocurrency, digital asset and blockchain industries may also be impacted by the risks associated with digital asset markets generally.
The Fund may invest in companies that rely on technologies such as the Internet and depend on computer systems to perform business and operational functions, and therefore may be prone to operational and information security risks resulting from cyber-attacks and/or technological malfunctions. Successful cyber-attacks against, or security breakdowns of, a company included in the Fund’s portfolio may result in material adverse consequences for such company, as well as other companies included in the portfolio, and may cause the Fund’s investments to lose value.
Concentrated investments in a particular industry tend to be more volatile than the overall market and increases risk that events negatively affecting such industries could reduce returns, potentially causing the value of the Fund’s shares to decrease.
The value of certain of the Fund’s investments in cryptocurrency ETFs and ETPs that invest in crypto assets and in publicly traded securities of companies engaged in digital asset-related businesses and activities are subject to fluctuations in the value of the crypto asset, which may be highly volatile. The market for crypto asset futures contracts may be less developed, and potentially less liquid and more volatile, than more established futures markets.
The Fund’s use of options involves speculation and can lead to losses because of adverse movements in the price or value of the underlying stock, index, ETF, ETP or other asset, which may be magnified by certain features of the options. The Fund’s successful use of options depends on the ability of the Adviser to forecast market movements correctly.
Companies that provide products or services that are supporting or accelerating the disruptive potential of novel technologies (“Transformative Tech Accelerators”) are engaged in emerging industries and/or new technologies that may be unproven. Transformative Tech Accelerators are vulnerable to rapid changes in product cycles, and may have limited product lines, markets, financial resources or personnel. Companies that rely heavily on technology tend to be more volatile than the overall market and are subject to additional risks specific to their industries.
The Fund is actively managed. The sub-adviser’s judgments about the attractiveness, relative value, or potential appreciation of a particular sector, security, commodity or investment strategy may prove to be incorrect, and may cause the Fund to incur losses. There can be no assurance that the sub-adviser’s investment techniques and decisions will produce the desired results.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. State Street Global Advisors Funds Distributors, LLC is the distributor for certain registered products on behalf of the advisor. SSGA Funds Management has retained Galaxy Digital Capital Management LP (“Galaxy Digital”) as the sub-adviser. State Street Global Advisors Funds Distributors, LLC is not affiliated with Galaxy Digital.
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit ssga.com. Read it carefully.
Not FDIC Insured - No Bank Guarantee - May Lose Value
State Street Global Advisors Fund Distributors, LLC, member FINRA, SIPC
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Deborah Heindel
617-662-9927
dheindel@statestreet.com
Galaxy
Michael Wursthorn
+1 917 371 2132
media@galaxy.com
Source: State Street Corporation
FAQ
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