1 min read.Updated: 27 Jul 2021, 12:09 PM ISTLivemint
The fund would invest at least 80% of its assets into companies that advance blockchain technology and the digitization of finance, the filing said
Investment banker Goldman Sachs Group's asset-management subsidiary has filed an application with the US Securities and Exchange Commission (SEC) to offer an exchange-traded fund (ETF) focused on securities of cryptocurrency-related companies. The Goldman Sachs Innovate DeFi and Blockchain Equity ETF would track the Solactive Decentralized Finance and Blockchain Index, the filing said.
As per the details, the fund would invest at least 80% of its assets, exclusive of collateral held from securities lending, in securities, depositary receipts and stocks of companies included in the index.
Goldman is hoping to offer exposure to decentralized finance or DeFi, which is one of crypto’s hottest growth areas. These are apps that allow for peer-to-peer lending, borrowing and trading, and they hold a total of about $64.5 billion in funds, according to tracker DeFi Pulse. The other area of the ETF’s potential investment, blockchain, could include any companies that develop digital ledgers for applications like payments.
Goldman has been ramping up its cryptocurrency work in recent months. It’s restarting its crypto trading desk to help clients like hedge funds deal in publicly traded futures tied to Bitcoin. In June, it also announced plans to offer options and futures trading in Ether, the second-largest cryptocurrency after Bitcoin.
The filing joins over a dozen crypto ETF applications sitting before the SEC. Goldman is planning to offer the ETF “as soon as practicable after the effective date of the Registration Statement," the filing said. Shares of the fund are expected to be listed for trading “on a national securities exchange."