Funds seek to provide active management of
digital asset exposures to capitalize on market inefficiencies and
evolving trends in a rapidly transforming ecosystem
NEW
YORK and BOSTON,
Sept. 10,
2024 /CNW/ - 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, and State Street Global Advisors, the asset management
business of State Street Corporation (NYSE: STT), today announced
the introduction of three actively managed digital asset and
disruptive technology focused ETFs sub-advised by Galaxy Asset
Management.
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."
For more information on these SPDR ETFs visit www.ssga.com.
About Galaxy Asset Management
Since 2018, Galaxy Asset Management ("GAM") has been dedicated
to offering institutional-grade access to the digital assets
ecosystem. GAM is staffed by a team of seasoned professionals who
adopt a conservative, fiduciary-first approach in all aspects of
the business. GAM oversees $4.7
billion1 in assets across passive, venture, and
active strategies. GAM is an affiliate of Galaxy Digital Holdings
Ltd., a digital asset and blockchain leader providing access to the
growing digital economy. The company is headquartered in
New York City, with global offices
across North America, Europe, and Asia. Additional information about Galaxy is
available on www.galaxy.com.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the
world's governments, institutions, and financial advisors. With a
rigorous, risk-aware approach built on research, analysis, and
market-tested experience, we build from a breadth of index and
active strategies to create cost-effective solutions. As pioneers
in index and ETF investing, we are always inventing new ways to
invest. As a result, we have become the world's fourth-largest
asset manager* with US $4.37
trillion† under our care.
|
*Pensions
& Investments Research Center, as of
12/31/23.
|
|
†This figure
is presented as of June 30, 2024 and includes ETF AUM of $1,393.92
billion USD of which approximately $69.35 billion USD is in gold
assets with respect to SPDR products for which State Street Global
Advisors Funds Distributors, LLC (SSGA FD) acts solely as the
marketing agent. SSGA FD and State Street Global Advisors are
affiliated. Please note all AUM is unaudited.
|
|
1 As of
July 31, 2024.
|
Important Risk Information
Investing involves risk including the risk of loss of
principal.
The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
a solicitation to buy or an offer to sell a security. It does not
take into account any investor's particular investment objectives,
strategies, tax status or investment horizon. You should consult
your tax and financial advisor.
The whole or any part of this work may not be reproduced, copied
or transmitted or any of its contents disclosed to third parties
without SSGA's express written consent.
All information is from SSGA unless otherwise noted and has been
obtained from sources believed to be reliable, but its accuracy is
not guaranteed. There is no representation or warranty as to the
current accuracy, reliability or completeness of, nor liability
for, decisions based on such information and it should not be
relied on as such.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs' net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Frequent trading of ETFs could significantly increase
commissions and other costs such that they may offset any savings
from low fees or costs.
Equity securities may fluctuate in value and can decline
significantly in response to the activities of individual companies
and general market and economic conditions.
Non-diversified funds that focus on a relatively small number of
securities tend to be more volatile than diversified funds and the
market as a whole.
The Fund may invest in companies within the cryptocurrency,
digital asset and blockchain industries that use digital asset
technologies or provide products or services involved in the
operation of the technology. The technology relating to digital
assets, including blockchains and cryptocurrency, is new and
developing and the risks associated with digital assets may not
fully emerge until the technology is widely used. The effectiveness
of the Fund's strategy may be limited given that the operations of
companies in the cryptocurrency, digital asset and blockchain
industries are expected to be significantly affected by the overall
sentiment related to the technology and digital assets, and that
the companies' stock prices and the prices of digital assets could
be highly correlated. Certain features of digital asset
technologies, such as decentralization, open source protocol, and
reliance on peer-to-peer connectivity, may increase the
risk of fraud or cyber-attack. Restrictions imposed by governments
on digital asset related activities may adversely impact blockchain
companies and, in turn, the Fund. Companies within the
cryptocurrency, digital asset and blockchain industries may also be
impacted by the risks associated with digital asset markets
generally.
The Fund may invest in companies that rely on technologies such
as the Internet and depend on computer systems to perform business
and operational functions, and therefore may be prone to
operational and information security risks resulting from
cyber-attacks and/or technological malfunctions. Successful
cyber-attacks against, or security breakdowns of, a company
included in the Fund's portfolio may result in material adverse
consequences for such company, as well as other companies included
in the portfolio, and may cause the Fund's investments to lose
value.
Concentrated investments in a particular industry tend to be
more volatile than the overall market and increases risk that
events negatively affecting such industries could reduce returns,
potentially causing the value of the Fund's shares to decrease.
The value of certain of the Fund's investments in cryptocurrency
ETFs and ETPs that invest in crypto assets and in publicly traded
securities of companies engaged in digital asset-related businesses
and activities are subject to fluctuations in the value of the
crypto asset, which may be highly volatile. The market for
crypto asset futures contracts may be less developed, and
potentially less liquid and more volatile, than more established
futures markets.
The Fund's use of options involves speculation and can lead to
losses because of adverse movements in the price or value of the
underlying stock, index, ETF, ETP or other asset, which may be
magnified by certain features of the options. The Fund's successful
use of options depends on the ability of the Adviser to forecast
market movements correctly.
Companies that provide products or services that are supporting
or accelerating the disruptive potential of novel technologies
("Transformative Tech Accelerators") are engaged in emerging
industries and/or new technologies that may be unproven.
Transformative Tech Accelerators are vulnerable to rapid changes in
product cycles, and may have limited product lines, markets,
financial resources or personnel. Companies that rely heavily on
technology tend to be more volatile than the overall market and are
subject to additional risks specific to their industries.
The Fund is actively managed. The sub-adviser's judgments about
the attractiveness, relative value, or potential appreciation of a
particular sector, security, commodity or investment strategy may
prove to be incorrect, and may cause the Fund to incur losses.
There can be no assurance that the sub-adviser's investment
techniques and decisions will produce the desired results.
Distributor: State Street Global Advisors Funds
Distributors, LLC, member FINRA, SIPC, an indirect wholly owned
subsidiary of State Street Corporation. References to State Street
may include State Street Corporation and its affiliates. Certain
State Street affiliates provide services and receive fees from the
SPDR ETFs. State Street Global Advisors Funds Distributors, LLC is
the distributor for certain registered products on behalf of the
advisor. SSGA Funds Management has retained Galaxy Digital Capital
Management LP ("Galaxy Digital") as the sub-adviser. State Street
Global Advisors Funds Distributors, LLC is not affiliated with
Galaxy Digital.
Before investing, consider the funds' investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, call
1-866-787-2257 or visit ssga.com. Read it carefully.
Not FDIC Insured - No Bank Guarantee - May Lose Value
State Street Global Advisors Fund Distributors, LLC, member
FINRA, SIPC
© 2024 State Street Corporation. All Rights Reserved.
State Street Global Advisors Funds Distributors, LLC,
One Iron Street, Boston, MA 02210
6769490.2.1.AM.RTL Exp. Date: 09/30/2025
Disclaimers
The TSX has neither approved nor disapproved the contents of
this press release.
SOURCE Galaxy Digital Holdings Ltd.
