State Street and Galaxy Digital launch 3 new crypto-related ETFs State Street and Galaxy Digital launch 3 new crypto-related ETFs
The three products launched by the fifth-largest asset manager in the world offer exposure through investments in ETFs and crypto firms.
2 min read
Updated: Sep. 10, 2024 at 10:17 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
State Street Global Advisors has launched three new digital asset and disruptive technology exchange-traded funds (ETFs) in collaboration with Galaxy Asset Management, an affiliate of Galaxy Digital, according to a Sept. 10 press release.
The new funds aim to leverage active management to navigate the evolving digital asset landscape and capitalize on market inefficiencies.
The three ETFs — SPDR Galaxy Digital Asset Ecosystem ETF (DECO), SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO), and SPDR Galaxy Transformative Tech Accelerators ETF (TEKX) — are designed to offer investors exposure to digital assets and emerging technologies like blockchain and artificial intelligence (AI).
Notably, these new crypto-related investment products are a result of the partnership State Street announced in June. State Street Corp. is the fifth-largest global asset manager, with over $4.1 trillion in assets under management (AUM) as of 2023.
Crypto exposure through companies and ETFs
All three funds divide their portfolios into 10 different allocations. The DECO fund focuses on companies poised to benefit from blockchain and crypto industry adoption, including crypto exposure through ETFs and futures.
As a result, the largest weight of its portfolio is Fidelity’s FBTC spot Bitcoin (BTC) ETF, which accounts for a 7% allocation.The fund also includes Bitcoin mining firms Terawulf, CleanSpark, Hut 8, and Core Scientific, with allocations varying between 4.02% to 6.45%.
Additionally, DECO also includes traditional finance companies, such as Visa and Meta, both with a 4% allocation each. CME Group, Taiwan Semiconductor, and Micron Technology wrap up DECO’s portfolio holdings.
HECO offers a similar portfolio but incorporates covered call and protective put options to manage volatility. Thus, it swaps Meta and FBTC shares for BlackRock and ProShares’ futures Bitcoin ETF BITO shares.
TEKX targets companies supporting new disruptive technologies, including blockchain and artificial intelligence. Most of its allocations are in power companies’ shares, with only Core Scientific and Terawulf from the crypto sector.
Anna Paglia, chief business officer for State Street Global Advisors, stated:
“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.”
Mentioned in this article
Bitcoin 
Core Scientific 
Galaxy Digital 
BlackRock 
CleanSpark 
Hut 8 
Fidelity Investments 
Meta 
CME Group 
Visa Author 
Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Core Scientific
Core Scientific is a leader in infrastructure and software solutions for Artificial Intelligence and Blockchain.
Galaxy Digital
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
CleanSpark
CleanSpark (NASDAQ: CLSK) is a sustainable bitcoin mining and energy technology company that is incorporated in Nevada.
Hut 8
Hut 8 is a digital asset miner with two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, Canada.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
Meta
Meta (formerly known as Facebook, Inc.) is an American online social media and social networking service company based in Menlo Park, California.
CME Group
CME Group is a global markets company empowering participants to efficiently manage risk and capture opportunities in every major asset class..
Visa
Visa is an American multinational financial services corporation headquartered in Foster City, California, United States.
