Goldman Sachs filed for a DeFi ETF which is more traditional than other proposed crypto ETFs as we learn more about it in our latest cryptocurrency news today.
The Goldman Sachs is a major traditional investment bank and now, Goldman Sachs filed for a Defi ETF that looks more traditional than other ones. It has edged towards Ethereum and decentralized finance in recent months. According to the filing with the Securities and Exchange Commission, it is ready to start offering an exchange-traded fund linked to companies in the same sector. The Innovate Defi and Blockchain Equity ETF will provide more exposure to investors to companies that are aligned with themes of blockchain technology and the digitalization of finance.
Goldman Sachs’s “DeFi” Fund contains only legacy companies and has 0 crypto-native companies.
They’re trying to deceive the public into thinking we already have decentralized finance.
Fix the money, fix the world
(h/t @hfangca ) pic.twitter.com/9b22kh2Qdw
— Charlie Shrem (@CharlieShrem) July 27, 2021
An ETF is an investment product that tracks the asset or group of assets and can be traded like a stock on traditional exchanges. While the SEC has a list of unapproved applications for Bitcoin ETFs that can give investors access to BTC without having to store and secure the digital assets themselves, the regulator still has yet to approve one. Goldman Sachs’ proposal is linked to company stocks rather than crypto assets and could stand a better chance of success even though the investors and the SEC alike don’t know what’s in it.
Goldman said that the fund will be designed to correspond to the performance of the Solactive Decentralized Finance and Blockchain Index. However, the index fund maker doesn’t list these ETFs on its website. With that said, Solactive’s Blockchain Technology Performance Index features companies like Google, Facebook, Nokia, PayPal, and Mastercard. While some of the corporations have crypto aspirations of other projects, the exposure to blockchain is not necessarily to the degree of Square or Microstrategy. Their embrace of DeFi that removes intermediaries as large financial institutions and other companies from processes like lending, trading, and baking is suspect.
This hasn’t stopped Goldman from investing in the sector. It joined a $28 million funding round for blockchain infrastructure company Blockdaemon in June. It revealed more plans to open trading for Etheruem options in the next few months.
As recently reported, In a note to investors on Tuesday, Goldman Sachs outlined the reason for the thinking that Ethereum could surpass Bitcoin as a store of value. According to the note, Goldman Sachs thinks ETH looks like the cryptocurrency with the highest real use potential and added that it is the most popular development platform for smart contract applications as per the reports.
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