Goldman Sachs has filed with the US SEC to create an exchange-traded fund that would grant investors access to blockchain equities and decentralised finance
Wall Street investment bank Goldman Sachs has filed with the United States Securities and Exchange Commission (SEC) to create an exchange-traded fund (ETF) that targets decentralised finance (DeFi) and blockchain equity.
According to its filing, the ETF will be tied to the performance of companies working in the blockchain sector and DeFi. Goldman Sachs wrote that the “fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive Decentralised Finance and Blockchain Index (the “Index”).”
At the moment, it is unclear what the Index is composed of. “The Index is designed to deliver exposure to companies that are aligned with two key themes, the implementation of Blockchain Technology and the Digitalisation of Finance (the “Themes”),” Goldman Sachs added.
The investment bank calls DeFi the digitalisation of finance, defining it as the digital transformation of the traditional financial services. Goldman Sachs said the digitalisation spreads across areas such as the support and delivery of payments, transaction services, lending and insurance.
The stocks that would be available on the ETF would not be limited to companies operating in the United States. According to Goldman Sachs, the ETF would cover companies located across developed and emerging markets worldwide and those listed on developed markets like Germany, Hong Kong, the UK, Japan, South Korea, Canada, France, Australia, Switzerland, and the Netherlands.
Goldman Sachs has been increasing its presence in the cryptocurrency space. Earlier this month, Goldman Sachs’ survey showed that 15% of its family office clients already invested in cryptocurrencies, and 45% more are interested in joining the market.
The US SEC has a history of not approving cryptocurrency-focused ETFs. At the moment, the SEC has nine Bitcoin and two Ether ETF proposals that it is reviewing. The government agency has postponed decisions on three Bitcoin ETF proposals so far this year.