State Street and Galaxy Shake Up Crypto Investments with New Blockchain ETFs

YEREVAN (CoinChapter.com) — On September 10, State Street Global Advisors and Galaxy Asset Management launched three new cryptocurrency exchange-traded funds (ETFs), offering diversified exposure to the rapidly expanding world of blockchain technology and digital assets. The new funds are the SPDR Galaxy Digital Asset Ecosystem ETF (DECO), SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO), and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX).

DECO and HECO ETFs: Blending Crypto with Traditional Stocks for Stability

Unlike many crypto-focused funds, DECO and HECO stand out by blending cryptocurrency investments with traditional stocks. These ETFs aim to capitalize on blockchain adoption by holding shares in Bitcoin miners, exchange operators, and even companies like Fidelity and Meta. The DECO ETF, for instance, holds 7% of its portfolio in the Fidelity Wise Origin Bitcoin Fund (FBTC), further diversifying its assets.

These funds combine stocks and cryptocurrency to offer a more stable investment option. They cater to those interested in digital assets but wary of the volatility of single cryptocurrencies. According to State Street, these funds focus on companies that are “well-positioned to benefit from the growing adoption of blockchain technology.”

Actively Managed Crypto ETFs: Diversified Investments with Competitive Fees

All three funds are actively managed, unlike typical passive index funds that track a single asset. Anna Paglia, the chief business officer at State Street, described these ETFs as the “next evolution of digital asset portfolios.” They offer a managed and diversified approach to crypto investments.

The management fees range between 0.65% and 0.9%, which is lower than many actively managed funds. However, they are still higher than passive crypto ETFs, which can charge as low as 0.25%.

TEKX ETF: Combining Blockchain and AI for Innovative Investments

The DECO and HECO ETFs invest in both crypto and stocks, while the TEKX ETF focuses on disruptive technologies like blockchain and artificial intelligence. This ETF provides exposure to tech companies pushing the future of blockchain. By combining blockchain and AI stocks, TEKX offers investors access to the latest innovations.

These new ETFs from State Street and Galaxy arrive as investors move away from traditional Bitcoin ETFs. However, they still seek diversified options. These funds offer a way to reduce risk while gaining exposure to the growing digital asset space. Above all, they provide an alternative for those cautious about the volatility of individual crypto investments.