State Street Global Advisors and Galaxy Asset Management have introduced a trio of cryptocurrency-related exchange-traded funds (ETFs), according to a Bloomberg report published on Tuesday. These funds are being launched even as investors continue to pull back from spot Bitcoin ETFs, with recent data showing the longest streak of withdrawals on record. Bloomberg reported that these new offerings are aimed at giving investors exposure to the broader crypto ecosystem rather than solely holding Bitcoin.
Bloomberg noted that the newly launched funds include the SPDR Galaxy Digital Asset Ecosystem ETF (ticker DECO), the SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO), and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX). All three funds are set to begin trading on Tuesday. As Bloomberg highlighted, these ETFs will focus on shares of companies connected to cryptocurrency alongside other ETFs that hold physical Bitcoin or Bitcoin futures, providing a diversified approach for crypto-exposed portfolios.
According to Bloomberg, Anna Paglia, chief business officer for State Street Global Advisors, stated that many investors are hesitant to engage directly with the highly volatile price swings of individual cryptocurrencies. Paglia believes that actively managed portfolios of digital assets represent the next evolution of the market, offering a more stable approach for those wary of the short-term volatility often associated with the space.
Bloomberg reported that all three ETFs will be actively managed, setting them apart from traditional passive funds. While the funds are entering a market where Bitcoin ETFs are facing significant outflows, the approach of investing in crypto-related companies and other assets may appeal to investors looking for a broader, less volatile entry point into the digital asset space.
This launch comes as investors assess the overall risk sentiment, which has wavered recently amid mixed U.S. economic data and anticipation of this month’s Federal Reserve meeting, Bloomberg explained. The timing of the launch suggests that despite the challenging environment for crypto, there is still interest in innovative products that balance exposure to both cryptocurrency and broader market sectors.
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