- Goldman Sachs said in a statement that the company wants to create a new DeFi and blockchain-related fund.
- The ETF will track decentralized funding and a blockchain index from a German financial index provider that includes stocks of large companies.
- The investment bank continues to look for ways to provide its clients with access to cryptocurrencies.
Goldman Sachs has filed an application with the US Securities and Exchange Commission (SEC) to create a new exchange-traded fund (ETF) based on decentralized finance and blockchain.
Goldman Sachs DeFi Fund Will Monitor Solactive Index
The Wall Street giant plans to create an ETF that ties into the performance of companies working to advance blockchain technology and digitalize finance.
A new fund called the Goldman Sachs Innovate DeFi and Blockchain Equity ETF will track the decentralized finance and blockchain index from Solactive, a German financial index provider.
The new investment banking fund will invest at least 80% of its assets in index securities, stocks and certificates of deposit. In the application, the company suggests that the fund will allow working with companies involved in blockchain and digitalization of finance.
Notable stocks included in the DeFi Solactive Index include Facebook, Nokia, Accenture, Google and others, which make up six to seven percent of the index. Other stocks that make up a smaller portion of the index include Alibaba, Tencent, PayPal, Microsoft, and Visa.
Goldman Sachs’ DeFi ETF cannot be compared to the broader cryptocurrency industry audience as the fund does not actually include any DeFi-related cryptocurrency products. The Solactive Index requires companies to be listed on a regulated stock exchange with a market capitalization of over $ 500 million.
The Wall Street giant’s use of the term “DeFi” relates to the digitalization of finance, including the transformation of financial services, payments, transactional services, loans and insurance.
The investment bank continues to look for new ways to introduce its clients to the cryptocurrency industry. Goldman Sachs recently found in a survey that 15% of family offices have already invested in the digital asset industry.
While Goldman Sachs’ attempt to create a DeFi ETF could get by without incidents for the crypto public, Grayscale is moving towards creating a decentralized financial fund that will allow institutional investors to access cryptocurrencies.
Investors can place capital in DeFi through Grayscale without buying or owning tokens directly.
The popular decentralized financial lending platform Aave is also launching a new protocol aimed at institutional investors due to the increased demand from professional investors in the sector.