Goldman Sachs has filed an application with the Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that would provide exposure to public companies in decentralized finance and blockchain worldwide.
As regulations allowing the establishment of Bitcoin exchange-traded funds remain on Hold in the United States, Goldman Sachs has officially applied for an ETF to provide exposure to decentralized finance and blockchain companies.
“The Goldman Sachs Innovate Defi and Blockchain Equity ETF (the ‘Fund’) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive Decentralized Finance and Blockchain Index (the ‘Index’),” in the filing.
Goldman Sachs announcement comes on the heels of Defi-based institutions announcing the launch of a decentralized financial fund last week with the leading Crypto Asset Manager, Grayscale.
In a recent report to the United States Securities and Exchange Commission, the bank stated that it would provide funding to improve the implementation of blockchain technology and automate finance through its foundation (the Goldman Sachs Innovate De-Fi and Blockchain Equity ETF).
Solactive, the fund’s financial indexer, intends to invest at least 80% of its fund’s assets in companies listed on the German Decentralized Finance and Blockchain Index. The Solactive approach demands that the Defi listed firms be listed on a stock exchange with a market cap of over 500 million US dollars and an average daily size of at least 500 million US dollars in the six previous months.
Despite the approval of crypto-currency ETFs in some countries, particularly Canada, where issued many such licenses this year, regulator companies were much more hesitant to issue permits in the United States.
Last week, Grayscale, a crypto investment manager, launched its Defi fund based on the CoinDesk Defi index. Investors in the fund can direct funds to the index without purchasing tokens.