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State Street Global Advisors (SSGA), the world's fourth-largest asset manager, announced has launched three actively managed exchange-traded funds (ETFs) focused on digital assets and disruptive technologies, according to a statement on Tuesday.
The two sides previously announced a partnership to launch investment strategies that would mark a shift away from solely focusing on individual cryptocurrencies, highlighting a more holistic approach to capitalizing on the digital asset landscape.
The three new funds, sub-advised by Galaxy Asset Management, are the SPDR Galaxy Digital Asset Ecosystem ETF (DECO), SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO), and SPDR Galaxy Transformative Tech Accelerators ETF (TEKX).
The launch comes amidst surging demand for digital asset investment products. While individual cryptocurrencies can be volatile, investors are increasingly seeking diversified exposure to the broader blockchain ecosystem, which includes companies developing and benefiting from this technology. SSGA's new ETFs aim to address this need by offering actively managed portfolios that capitalize on market inefficiencies and evolving trends, the announcement said.
Blockhead
Rather than investing in specific crypto assets, these funds offer diversified exposure to blockchain technology: DECO invests in companies positioned to benefit from the growth of blockchain and digital assets, with additional exposure to cryptocurrencies through ETFs and futures, while HECO does the same but additionally employs options strategies to manage volatility. TEKX takes a broader approach, focusing on companies across the value chain of disruptive technologies, including blockchain and artificial intelligence (AI).
"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 said.
Fees range from 0.65% for DECO and TEKX, to 0.90% for HECO.
"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.
Franklin Templeton and Hashdex are currently awaiting regulatory approval to launch diversified spot crypto index ETFs in the United States.
