State Street unveils three new crypto-related ETFs managed by Galaxy Digital

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State Street Global Advisors has announced three crypto exchange-traded funds (ETFs) sub-advised by Galaxy Asset Management. ETFs invest in crypto and blockchain industry firms.

The new funds are the SPDR Galaxy Digital Asset Ecosystem ETF (DECO), the SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO) and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX).

“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.

According to the announcement, the ETFs seek to provide exposure to crypto and firms at the forefront of blockchain technologies and digital assets.

In June, State Street Global Advisors and Galaxy Asset Management launched the SSGA Active Trust, with the aim of providing various crypto investment opportunities.

A month later, State Street launched its SPDR Galaxy Digital Asset Ecosystem ETF, targeting investments in crypto stocks and futures amid rising market demand.

Combining traditional and crypto finance

The DECO ETF focuses on companies benefiting from blockchain and crypto adoption, such as Bitcoin miners Core Scientific, Hut 8 and Terawulf, while adding positions to traditional financial companies such as Meta and Visa. The fund also has positions in Fidelity’s FBTC spot Bitcoin ETF.

HECO, meanwhile, has a similar portfolio allocation for companies, but swapped Meta and FBTC shares for BlackRock shares and BlackRock’s IBIT spot Bitcoin ETF. HECO also incorporates covered call options and protective put options to manage volatility.

TEKX targets companies that support new disruptive technologies, including blockchain and artificial intelligence, while adding some US dollar allocations.

“With the rapid evolution of digital assets and blockchain technology, it is essential to have a dynamic approach to investing in this asset class,” said Chris Rhine, head of Liquid Active Strategies at Galaxy and lead portfolio manager of the three ETF- hate.

Rhine added that these new ETFs allow investors to capitalize on opportunities in the blockchain industry while keeping volatility in check.

Moreover, new crypto-related products are intended to attract a wider range of investors, boosting the onboarding of crypto users.

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