If there is a bank that likes to dabble in the world of cryptocurrencies, it is undoubtedly the very active Goldman Sachs. They are in a position that could be described as an active withdrawal from this sector. That is to say, attentive and curious, but while remaining at a reasonable safe distance. This is why the company missed the Bitcoin train just over a year ago. But since mistakes should be learned from, it seems that they are currently taking a very close look at DeFi.
Nothing really surprising when you see that even outside the crypto area, this decentralized finance is the focus of all eyes. A field whose explosive development oscillates between billions of dollars and ideological positioning. This aspect irritates the regulators as much as it attracts the lovers of high returns. This is why Goldman Sachs is trying to break into the field with an ETF applied to this sector while respecting the decision-making power of the Security and Exchange Commission (SEC), which is already aware of this.
The legal registration procedure of this ETF has already been officially launched and it requires an indispensable approval from the SEC.
“The Goldman Sachs Innovate DeFi and Blockchain Equity ETF (the “Fund”) seeks to provide investment results that closely match, before fees and expenses, the performance of the Solactive Decentralized Finance and Blockchain Index (the “Index”). – Goldman Sachs
A set up modeled after the Solactive Blockchain Technology Performance Index obviously enters the strategy of opening up the Goldman Sachs bank to the market of derivatives in relation to cryptocurrencies. This with what is presented as a fund intended to invest at least 80% of its assets in companies that advance blockchain technology and the digitization of finance.
This exchange-traded fund (ETF) dedicated to DeFi should therefore see the light of day soon. But the details and specifics related to its implementation remain rather vague for the moment. It seems that under the generic term of DeFi, the Goldman Sachs bank integrates everything related to the “digitalization of finance”. This could just as easily refer to “the digital transformation of traditional financial services, such as payment processing and delivery, transaction services, lending and insurance.” What this will actually encompass in time remains to be seen. And perhaps in anticipation of what the SEC will or will not agree to include.
This is a decision that can be related to the recent study published by the investment bank which reported a significant desire for exposure to cryptocurrencies from the ultra-rich through these family offices that manage billions of dollars.