On Monday, the Goldman Sachs Group’s asset-management branch filed an application to provide investors an exchange-traded fund. Not just any fund, but specifically crypto-related companies’ securities. They filed the application with the US Securities and Exchange Commission according to reports.
The filing stated that the group’s Innovative DeFi and Blockchain ETF would trace the Solactive Decentralized Finance and Blockchain Index. The fund is set to invest a minimum of 80 percent of its assets. It will do so in company stocks listed in the index, depositary receipts, and securities. However, this is exclusive of the collateral it holds from securities lending.
In the last few months, various crypto-related firms have begun going public. At the very least, they’re discussing the potential of doing so. These moves are beneficial for equity investors seeking an opportunity to enter the space. In spring, Coinbase Global INC., the US’s largest crypto exchange, went public. Exchanges such as FTX and Kraken are considering going public as well. Not to mention, there are also vehicles such as the Grayscale Bitcoin Trust.
With the recent move, the Goldman Sachs Group will help decentralized finance get some exposure. Currently, DeFi is the crypto industry’s most lucrative area for growth. Such apps allow users to engage in peer-to-peer trading, borrowing, and lending. Based on data from the DeFi Pulse tracker, these apps hold over $60 billion in funds.
Blockchain is the exchange-traded fund’s other area of a potential investment. It can include just about any company forming digital ledgers for payment-like applications. In recent months, the group has been increasing work in the crypto domain. For instance, it is restarting its crypto trading desk. This will help clients, such as hedge funds, participate in dealing with Bitcoin-related publically traded futures.
In June, Goldman Sachs announced that it had plans to provide futures trading in the Ethereum token, Ether. Ethereum is a big player in the cryptocurrency world, holding its own network and impressive value; it’s second to only Bitcoin. Considering this, crypto enthusiasts are bound to get excited.
The reason behind Goldman filing for the ETF is unclear. After all, it did so when Bitcoin has been shuffling between the $30,000 and $40,000 mark for weeks. This is despite Bitcoin had hit a mid-April record with a value of around $65,000.
The filing stated that the Goldman Sachs Group plans on offering the ETF very soon. It will implement it as soon as the registration statement is finalized. The exchange-traded fund’s shares are set to be listed on a national securities exchange for trading. Interested traders can set the date for when the shares are listed.