Goldman Sachs plans to create DeFi equity ETFs

Goldman Sachs will create ETFs tied to DeFi and Blockchain Index
  • Goldman Sachs is seeking to roll out ETFs tied with DeFi and blockchain firms
  • The plans of the bank were revealed following a recent filing with the US SEC
  • what the index is composed of is yet to be clarified by the investment bank
  • The filing has defined DeFi as digitalization of traditional financial services
  • Goldman Sachs is casting around for other different ways to tap demand for exposure, in various forms to the cryptosphere

Goldman Sachs is a wall street mega-investment bank offering services to its global clients. Recently, the bank has restarted its cryptocurrency trading desk. On Monday, in a filing with the United States Security and Exchanges Commission (SEC), it is revealed that the bank is planning to issue exchange-traded funds (ETFs). The ETFs will be tied to the performance of the firms working on blockchain technology and the decentralized finance (DeFi).

Goldman Sachs delivers more exposure to blockchain firms

On Monday, the filing with the US SEC revealed that Goldman Sachs seeks to introduce ETFs. The fund plans to offer investment results that closely correspond to the performance of the Solactive DeFi and Blockchain index. The corresponding will be before any fees or expenses. 

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Solactive is a German index provider that operates globally. The firm maintains several indices that relate to virtual currency and its underlying technology. Notably, what the index is composed of is yet to be cleared. Moreover, such an index with such a name is not included on the index provider’s list of active indices.

What will the planned index provide?

According to the filing with the US SEC, the index is designed to deliver exposure to firms that are aligned with two vital themes. Such themes include the implementation of blockchain technology and the DeFi by which the bank relates the digitalization of Finance.

It is noteworthy that the filing defined DeFi as the digitalization of finance. Indeed, the bank means the digitalization of traditional financial services. The financial services include the support and delivery of payments, transaction-related services, lending, and insurance services.

Bank still seeks different ways to tap demand

According to the latest filings, the eligible ecosystem of stocks consists of common equity securities. Such securities include depository receipts of firms located across both developed and emerging markets globally. Such financial products are listed and traded on major exchanges in certain developed markets. 

The filing noted that such financial markets include, Australia, Japan, Germany, Hong Kong, South Korea, Switzerland, United States, Netherland, and the United Kingdom.

Still, it is observed that Goldman Sachs is casting around for other different ways to tap demand for exposure, in various forms to the cryptosphere. 

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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