Giant US bank State Street and Galaxy to launch crypto ETFs

The approval of Bitcoin spot ETFs by the SEC on January 10 prompted many institutions in the US to take action. State Street, one of the country’s largest banks, and Galaxy Digital have partnered to issue ETFs that invest in crypto companies. State Street will be responsible for the management of the funds, while Galaxy Digital will be responsible for day-to-day operations.

Giant US bank State Street and Galaxy to launch crypto ETFs

State Street bank, which has $4.3 trillion in assets under management, has partnered with Galaxy Digital ETF. The ETFs will invest in cryptocurrency-focused companies. The funds will be managed by State Street’s investment subsidiary State Street Global Advisors and Galaxy’s related subsidiary Galaxy Asset Management.

What types of companies will it invest in?

According to a notice from State Street to the SEC, the fund will be called the SSGA Active Fund. The application is currently awaiting approval from the SEC. The ETF will invest in capital market instruments of crypto companies, crypto futures funds and contracts, and spot crypto ETFs. The companies in which the ETFs will invest will mostly be blockchain software firms, Bitcoin miners, exchanges and crypto payment providers.

In a joint statement from the two companies, it was stated that the increasing interest in the crypto world has led to an increase in the need for such investment instruments, so investments that go beyond Bitcoin are needed.

State Street Bank will be responsible for the management and accounting of the fund, while Galaxy will be responsible for day-to-day operations.

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