State Street and Galaxy Launch Trio of Crypto-Focused ETFs Amid Spot Bitcoin Outflows

State Street Global Advisors and Galaxy Asset Management are launching a trio of cryptocurrency-focused exchange-traded funds, even as investors are pulling back from spot Bitcoin funds, as reported by Bloomberg.

The SPDR Galaxy Digital Asset Ecosystem ETF (ticker DECO), the SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO), and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX) will begin trading on Tuesday, according to a statement.

State Street and Galaxy’s partnership marks the launch of their first funds amid a steady stream of outflows from US-listed spot Bitcoin ETFs, which have recently experienced their longest streak of withdrawals on record. On  September 3, the 11 spot Bitcoin ETFs experienced a combined net outflow of $287.8 million , marking the largest single-day outflow since May 1, when over $500 million was withdrawn, according to Farside Investors.

This trend comes as risk sentiment fluctuates in response to mixed US economic data ahead of the upcoming Federal Reserve meeting. Instead of holding cryptocurrencies directly, the new funds will invest in shares of crypto-linked companies, along with other ETFs that hold physical Bitcoin or futures.

“Some investors are not comfortable with the short-term, volatile price swings of single-currency crypto,” said Anna Paglia, chief business officer for State Street Global Advisors, in the release. “We believe the next evolution of this market is the introduction of actively managed digital asset portfolios.”

All three funds are actively managed.