State Street Global Advisors (SSGA AUM $4.3 trillion) is debuting three digital asset ETFs through a partnership with Galaxy Asset Management announced a few months ago.
“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.”
Hence, the ETFs offer some exposure to crypto, but also include investment in companies that operate directly in the blockchain sector and in adjacent industries such as semi-conductors, data warehousing and mining.
The three ETFs are:
- The SPDR® Galaxy Digital Asset Ecosystem ETF (DECO) will invest in these sorts of companies, but also includes crypto exposure through ETFs and futures.
- The SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO) is similar with the addition of hedging volatility using covered call and protective put options.
- The SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX) has a broader range of investments in disruptive technologies, including blockchain, AI and other sectors.
Based on a previous announcement, State Street Bank and Trust will provide administrative and accounting services for the new ETFs.
