Updated 06 Aug, 2021

Goldman Sachs Files with SEC for a “DeFi and Blockchain ETF”


Key Takeaways:

  • Goldman Sachs filed with the SEC to create a DeFi and Blockchain ETF
  • The fund, yet to be approved by the SEC, will include DeFi and blockchain-oriented companies

An ETF by Goldman Designed for DeFi and Blockchain

Top investment bank Goldman Sachs has asked for an approval to launch an exchange-traded fund (ETF). The fund would be tied to the performance of crypto-companies, particularly those focused on blockchain technology and decentralized finance (DeFi).

According to the filing with the Securities and Exchange Commission, the crypto-centered ETF would offer investors access to companies “aligned with the themes” of Blockchain Technology and Digitalization of Finance.

If the SEC gives the green light, it would be called the Goldman Sachs Innovate DeFi and Blockchain Equity. It will be created with the intention to provide “investment results that closely correspond, before fees and expenses, to the performance of the Solactive Decentralized Finance and Blockchain Index (the “Index”).”

Not Yet Clear What Will be Included in the ETF

It is unclear, however, what that index would be comprised of as an index with that name is not included on Solactive’s list of active indices. On the other hand, Solactive has a number of indices related to cryptocurrencies and blockchain technology.

While Goldman hasn’t yet revealed what companies would be included in the ETF, the filing mentions that the “eligible universe of stocks is comprised of common equity securities, including depositary receipts, of companies located across developed and emerging markets worldwide.”

The description of eligible candidates says these companies would be “listed and traded on major exchanges in certain developed markets, including: Australia, Canada, France, Germany, Hong Kong, Japan, South Korea, Switzerland, the Netherlands, the United Kingdom and the United States.”

Goldman Sachs, as one of the Wall Street mainstays, has long been following developments in the cryptocurrency industry. The latest effort from the investment firm to meet the rising demand for exposure to blockchain projects and cryptocurrencies.

A few weeks back, Goldman published results from a survey that said 15% of family offices are invested in cryptocurrencies, while another 45% are eager to dive into the fast-emerging market.