Goldman Sachs files for new DeFi ETF with SEC that tracks only major stocks

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.