SPDR ETF : State Street Global Advisors, the asset management business of State Street Corporation announced the introduction of three actively managed digital asset and disruptive technology focused ETFs sub-advised by Galaxy Asset Management, an affiliate of Galaxy Digital Holdings Ltd. (TSX: GLXY) and one of the world’s largest investment managers of digital assets and blockchain exposures.
Funds seek to provide active management of digital asset exposures to capitalize on market inefficiencies and evolving trends in a rapidly transforming ecosystem
The SPDR® Galaxy Digital Asset Ecosystem ETF (DECO), SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO) and SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX) seek to bring active management to digital asset exposures to capitalize on market inefficiencies and evolving trends in a rapidly changing digital landscape.
“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. “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, which is appealing to a wider range of investors, and why we are excited to bring these three products to market.”
We believe an active approach to digital asset investing is essential in order to fully capture the potential of this rapidly changing technology. An active manager can help gain exposure to cryptocurrencies as well as firms at the forefront of this transformational technological change, all the while managing the volatility profile of the strategy based on market trends.
“State Street Global Advisors’ strength in delivering ETF solutions to investors coupled with Galaxy’s expertise in digital assets is a compelling combination for investors looking to navigate this rapidly changing digital asset market – an ecosystem that extends beyond just cryptocurrencies themselves,” Paglia added.
With the future of digital assets embodying cryptocurrencies, tokens and the companies that operate in the blockchain and surrounding ecosystem, such as semi-conductors, data warehouses and miners, we are introducing three actively managed funds that will focus on these markets:
The SPDR® Galaxy Digital Asset Ecosystem ETF (DECO) seeks to provide long-term capital appreciation through an actively managed portfolio of companies that are well positioned to benefit from the growing adoption of the blockchain and digital asset industries, as well as cryptocurrency exposures through ETFs and futures. DECO is designed to help investors pursue potential growth from further adoption of digital assets.
The SPDR® Galaxy Hedged Digital Asset Ecosystem ETF (HECO) seeks to provide long-term capital appreciation through an actively managed portfolio of companies that are well positioned to benefit from the growing adoption of the blockchain and digital asset industries as well as cryptocurrency exposures through ETFs and futures. HECO is designed to manage volatility through the incorporation of covered call options and protective put options on investments held in the portfolio.
The SPDR® Galaxy Transformative Tech Accelerators ETF (TEKX) seeks to provide long-term capital appreciation to investors through an actively managed portfolio of companies within the value chain supporting new disruptive technologies, which include but are not limited to blockchain and artificial intelligence (AI). TEKX is designed to help investors pursue a potential long-term secular growth opportunity driven by the potential economic benefits from new innovations.
“With the rapid evolution of digital assets and blockchain technology, it’s crucial to have a dynamic approach to investing in this asset class. 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, Head of Liquid Active Strategies at Galaxy and lead portfolio manager of the three ETFs. “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.”
Source: ETFWorld.co.uk
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