• Goldman Sachs has revealed in a filing that the firm is looking to create a new fund related to DeFi and blockchain.
  • The ETF would track a Decentralized Finance and Blockchain Index from a German financial index provider that includes stocks from large companies.
  • The investment bank continues to look for ways to allow its clients to gain exposure to cryptocurrencies. 

Goldman Sachs has filed an application with the United States Securities & Exchange Commission (SEC) for a new decentralized finance (DeFi) and blockchain-based exchange-traded fund (ETF). 

Goldman Sachs DeFi fund to track Solactive Index

The Wall Street giant is planning to create an ETF that would be tied to the performance of firms working on developing blockchain technology and the digitization of finance. 

The new fund, called the Goldman Sachs Innovate DeFi and Blockchain Equity ETF, would be tracking the Decentralized Finance & Blockchain Index from Solactive – a financial index provider from Germany. 

The investment bank’s new fund will invest a minimum of 80% of its assets into securities, stocks and depository receipts in the index. The firm suggests in the filing that the fund would enable exposure to firms that are involved in blockchain and the digitization of finance. 

The notable stocks included in the DeFi index by Solactive includes Facebook, Nokia, Accenture and Google, which represent 6% to 7% percent of the index. Other stocks that make up smaller portions of the index include Alibaba, Tencent, PayPal, Microsoft and Visa. 

Goldman Sachs’ DeFi ETF is rather unrelatable to the wider crypto industry audience, as the fund does not actually include any DeFi-related crypto products. The Solactive index requires the corporations to be listed on a regulated stock exchange and have over a $500 million market capitalization.

The Wall Street giant’s use of the term “DeFi” is related to the digitization of finance, including the transformation of financial services, payments, transaction services, lending and insurance. 

The investment bank continues to look for new ways of providing its clients with exposure to the cryptocurrency industry. Goldman Sachs recently found in a survey that 15% of family offices have already invested in the digital asset industry. 

While Goldman Sachs’ attempt at a DeFi ETF may be uneventful for the crypto audience, Grayscale is moving toward creating a decentralized finance fund, which would allow institutional investors to gain exposure to popular DeFi cryptocurrencies.

Investors would be able to allocate capital toward DeFi through Grayscale without purchasing or holding the tokens directly. 

Popular decentralized finance lending platform Aave is also launching a new protocol catered toward institutional investors due to increased demand from professional investors in the industry. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Aptos and EIGEN lead $200 million token unlocks next week amid massive failure in low float, high FDV launches

Aptos and EIGEN lead $200 million token unlocks next week amid massive failure in low float, high FDV launches

The crypto market will witness token unlocks worth $200 million next week. APT and EIGEN will see the highest unlock volume, adding $93 million and $34 million worth of new supply to circulation. There is a massive failure among tokens that conducted airdrops with low float, high FDV.

More Cryptocurrencies News
Bitcoin, S&P 500 and USD sees simultaneous uptick amid declining unemployment rate

Bitcoin, S&P 500 and USD sees simultaneous uptick amid declining unemployment rate

Bitcoin trades around the $62,200 level on Saturday following a reduction in the US unemployment rate. In addition to BTC, the S&P 500 and the US Dollar Index also posted gains. This marks a new market trend amid investors' heightened risk appetite.

More Bitcoin News
Ethereum sees revenue uptick in September amid rising inflation rate

Ethereum sees revenue uptick in September amid rising inflation rate

Ethereum revenue in September was about 4x larger than Solana's after the Fed rate cut. Ethereum annual inflation rate has risen to a two-year high of 0.74%. Ethereum has reclaimed the $2,395 support level and could rally to $2,595 if it crosses above the 100-day SMA.

More Ethereum News
Token unlock pushes XRP lower as holders come to grips with SEC appeal

Token unlock pushes XRP lower as holders come to grips with SEC appeal

Ripple climbs 2% on Friday. XRP is influenced by several market movers: the US SEC’s decision to appeal the final ruling in the Ripple lawsuit, Ripple’s $1 billion token unlock on October 1 and other token unlocks this month.

More Ripple News
Bitcoin: Is BTC sell-off over?

Bitcoin: Is BTC sell-off over?

Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.

Read full analysis
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

BTC

ETH

XRP