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In a landmark move for the digital asset industry, State Street Global Advisors, the world's third-largest asset manager, has announced a collaboration with Galaxy Asset Management, a leading crypto-focused investment firm.
The two giants are partnering 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, via manager-directed strategies. "We believe this is where the next level of growth is for the digital asset ecosystem," State Street said in an announcement on Thursday.
“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,” Anna Paglia, chief business officer at State Street, said.
While specifics of the investment strategies haven't been disclosed, the press release suggests a focus on companies involved in the digital asset ecosystem, potentially encompassing blockchain infrastructure providers, crypto exchanges, and security token offerings (STOs). This shift away from solely focusing on individual cryptocurrencies highlights a more holistic approach to capitalizing on the digital asset landscape.
“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,” Steve Kurz, global head of asset management at Galaxy, added.
This partnership holds significant implications for the digital asset industry. It demonstrates the growing acceptance of digital assets among established financial institutions and paves the way for wider institutional adoption. Additionally, the focus on companies within the broader digital asset ecosystem could unlock new avenues for investment and fuel further innovation in the space.
