State Street Global Advisors and Galaxy Asset Management have introduced three new digital asset-focused exchange-traded funds (ETFs).
The ETFs aim to offer “active management” of digital asset exposures to capitalize on market inefficiencies, a Tuesday release said.
Dubbed Galaxy Digital Asset Ecosystem ETF (DECO), Galaxy Hedged Digital Asset Ecosystem ETF (HECO) and Galaxy Transformative Tech Accelerators ETF (TEKX), the products are designed to capitalize on the Web3 growth.
Anna Paglia, chief business officer for State Street Global Advisors, believes that digital assets have the power to transform financial markets over the next decade.
“Some investors are not comfortable with the short-term, volatile price swings of single-currency crypto. We believe the next evolution of this market is the introduction of actively managed digital asset portfolios that help investors tap into the benefits of diversification.”
The DECO fund is designed to help investors grow from further adoption of digital assets. HECO fund enables investors to manage volatility through various protective options. Meanwhile, TEKX fund helps in long-term secular growth opportunity driven by the potential economic benefits from new innovations.
“Our new suite of actively managed ETFs allows investors to capitalize on the opportunities within this transformative space while managing the inherent volatility,” said Chris Rhine, lead portfolio manager of the three funds. “By integrating Galaxy’s deep expertise in digital assets with State Street’s robust ETF infrastructure, we’re positioned to deliver long-term value in a market that is reshaping the future of finance.”
Additionally, the release noted that State Street ETFs would charge fees of 0.65% to 0.9%. Though the fee is more than other passive crypto exchange-traded funds that charge a maximum of 0.25%, it is lesser than many actively managed funds.
“We believe an active approach to digital asset investing is essential in order to fully capture the potential of this rapidly changing technology,” Paglia added.
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