SPY issuer State Street partners with Galaxy to enter the cryptocurrency ETF market

The world's largest ETF SPY issuer, State Street Global Advisors, is planning to collaborate with Galaxy Asset Management to launch an exchange-traded fund SSGA Active Trust, providing investors with a broader range of investment opportunities in the cryptocurrency space.

SSGA Active Trust Ventures into Crypto ETF Space

According to its registration documents, the SSGA Active Trust investment objective will include:

• Stocks of foreign and domestic companies in the cryptocurrency and blockchain industry
• Cryptocurrency futures ETF
• Cryptocurrency futures contracts
• Cryptocurrency spot ETP

The range of crypto companies includes blockchain software developers, Bitcoin miners, exchanges, and crypto payment processors.

State Street Global Advisors (SSGA) launched the first listed ETF, the SPDR S&P 500 ETF, with the code SPY, in 1993. Managing over $4.9 trillion in assets, it is the world's largest ETF and the top choice for most investors in US stocks. Galaxy, which focuses on digital assets, manages around $6.2 billion in assets.

They believe that since the launch of spot Bitcoin ETFs, institutional and retail interest in digital assets has surged. However, investors are also seeking investment options beyond pure spot Bitcoin to access this rapidly growing asset class, believing it is the next growth stage for the digital asset ecosystem.

Crypto Themed ETFs Showing Strong Performance Over the Past Year

Bloomberg ETF analyst Eric Balchunas recently posted statistical data, listing some ETFs that have achieved an almost impossible feat - outperforming the S&P 500 index from January 2023 to June 25, 2024, with almost no investment in NVIDIA, with the code NVDA. Many of these are ETFs investing in crypto themes, with many asset management companies issuing Bitcoin spot ETFs, such as VanEck, Invesco, Bitwise, Fidelity, and Grayscale.