- Galaxy Digital has teamed up with State Street to offer an actively managed crypto ETF for U.S. investors.
- The crypto ETF’s possible inclusion of tokens beyond Bitcoin is in line with Galaxy Digital’s long-term crypto vision.
Galaxy Asset Management has teamed up with State Street Global Advisors to offer an actively managed crypto ETF for investors based in the U.S.
State Street, one of the world’s largest asset managers, filed with the Securities and Exchange Commission (SEC) to register the SSGA Active Trust crypto fund.
The fund will be managed by Galaxy Digital, a crypto-focused financial services firm.
The goal of the fund is to provide U.S. investors with access to the entire $2.4 trillion digital asset ecosystem through active strategies.
The firms stated that the entire range of digital assets and associated services are open to investment.
This includes mining firms, wallet providers, crypto exchanges, venture capital firms and more.
The firms also stressed that they would be looking at tokens outside of Bitcoin (BTC) and other major market cap coins.
Crypto ETF Approval Expands the Market for Other Crypto Funds
Galaxy Digital’s actively managed crypto ETF is an example of the impact of recent regulatory easing in the U.S.
The approval of spot Bitcoin and Ethereum ETFs opened the possibility of other tokens gaining access to traditional financial markets soon.
This would allow active fund managers to use the advanced strategies that make outperforming the market possible.
“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, State Street Global Advisors chief business officer, stated.
Galaxy Digital already has similar funds in Europe and Canada, where crypto regulation is far more advanced compared to the U.S.
This demonstrates that Galaxy Digital was merely waiting for the regulatory regime in the U.S. to change before offering similar products to U.S. investors.
These actively managed crypto funds require the right investment vehicles so they can operate complex strategies without needing to deal with the burden of taking possession of the tokens.
Galaxy Digital’s Long-Term Vision for Crypto ETFs
Michael Novogratz, CEO of Galaxy Digital, has recently stated that he expects crypto to remain range-bound for the next few quarters.
This implies that this new crypto ETF is not a short-term cash grab but rather part of a longer-term strategy.
Novogratz predicts a period of price consolidation for major crypto tokens as crypto continues to become integrated with traditional finance.
He also stated that the upcoming U.S. election and the resulting regulatory regime will have a significant impact on crypto prices.
However, his plan to incorporate smaller market cap tokens into his crypto ETF suggests that he sees the continued financialization of crypto tokens as an inevitability.
