State Street unveils crypto ETFs with partner Galaxy

The three actively managed funds target equities in the blockchain and AI realms while seeking to manage volatility

September 10, 2024 10:24 am

JHVEPhoto/Shutterstock modified by Blockworks

One of the world’s largest asset managers now offers crypto ETFs.

State Street Global Advisors (SSGA) has launched its Digital Asset Ecosystem ETF (DECO), Hedged Digital Asset Ecosystem ETF (HECO) and Transformative Tech Accelerators ETF (TEKX).

DECO invests in the stocks of companies “well positioned to benefit from the growing adoption of the blockchain and digital asset industries,” as well as crypto ETFs and futures contracts. HECO does the same, but seeks to manage volatility via covered call options and protective put options.

TEKX targets “companies within the value chain supporting new disruptive technologies,” including both blockchain and AI.

Newsletter

Subscribe to Blockworks Daily

The launches come a couple months after SSGA revealed in June its partnership with crypto-focused Galaxy Digital, which sub-advises the three offerings. The actively managed funds carry the “SPDR Galaxy” brand.

SSGA — with $4.4 trillion total assets under management — is behind only BlackRock and Vanguard in terms of AUM within its ETFs specifically. The company launched the first-ever US ETF — the SPDR S&P 500 ETF (SPY) — in 1993.

BlackRock currently runs the largest bitcoin fund (at $20.3 billion in assets) and an ether ETF that has notched $1 billion of net inflows since its July 23 launch. Vanguard has said it has no plans to offer crypto ETFs and does not allow clients to buy BTC funds or ETH products on its platform.

For now, SSGA is opting not to launch spot crypto ETFs. Such US-listed BTC funds have seen roughly $1.2 billion of net outflows over the last nine trading days.

Anna Paglia, SSGA’s chief business officer, said in a statement: “Some investors are not comfortable with the short-term, volatile price swings of single-currency crypto.”

She added that the company views “actively managed digital asset portfolios that help investors tap into the benefits of diversification” as the “next evolution of this market.”

The largest US ETF focused on crypto- and blockchain-related equities is the Amplify Transformational Data Sharing ETF (BLOK), which launched in 2018 and manages $627 million in assets.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Newsletter

Blockworks Daily

Upcoming Events

Digital Asset Summit 2025

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

learn more

recent research

Research

Analyst Takes: Post-Election Insights

With the recent election, it’s clear that there will be a meaningful shift in crypto regulations and legislation. Trump is likely as pro-crypto as a president can be. He launched (multiple) of his own NFT collections and is launching an Aave wrapper called World Liberty Fi. He has also spoken out and mentioned that he wants to make the United States "the crypto capital of the planet" and transform it into the "Bitcoin superpower of the world". He proposed creating a strategic national Bitcoin stockpile alongside support from Senator Cynthia Lummis, promising to retain 100% of all Bitcoin held by the U.S. government. More importantly, we’re likely to see deregulation across the board in a lot of industries, with crypto being one of them - as Trump has committed to keeping the crypto market largely unregulated. Crypto, DeFi in particular, has historically been knee-capped by overreaching and hostile governmental agencies and regulation by enforcement, as evidenced by the plethora of Wells notices and lawsuits over the past few years. With Donald Trump winning the presidency, Republicans taking control of the Senate, and being on the verge of securing the House, we think it’s likely that crypto realizes positive regulatory clarity. Below, you can find our analysts’ takes:

by Boccaccio