Crypto ETFs from State Street and Galaxy Digital begin trading

Through a partnership, State Street Global Advisors, one of the world's largest investment managers, and Galaxy Digital have launched three exchange-traded funds designed to offer investment exposure to a mix of both companies associated with blockchain technology and cryptocurrencies through futures and other ETFs.

"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," State Street Global Advisors' Chief Business Officer Anna Paglia said in a statement. "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."

State Street has partnered with Galaxy Digital affiliate Galaxy Asset Management to launch the three "actively managed" ETFs. The three funds that began trading Tuesday possess the ticker symbols DECO, HECO and TEKX. While both DECO and HECO involve "cryptocurrency exposures through ETFs and futures," the latter also seeks to manage "volatility through the incorporation of covered call options and protective put options," according to the statement.

Back in July, the two firms requested permission to launch the ETFs from the U.S. Securities and Exchange Commission, citing a perceived need to provide investors exposure to the digital assets industry beyond spot bitcoin ETFs. Galaxy Digital issued a spot bitcoin ETF jointly with Invesco, which launched earlier this year.

"We believe an active approach to digital asset investing is essential in order to fully capture the potential of this rapidly changing technology," the two firms said in their statement.

Bitwise Invest CIO Matt Hougan recently said that “investment advisors are adopting bitcoin ETFs faster than any new ETF in history," citing data showing BlackRock’s spot BTC fund has attracted $1.5 billion from investment advisors.

The 12 bitcoin ETFs recorded $1.61 billion in total daily trading volume on Monday and have accumulated $16.92 billion in net inflows since launching in January.