Goldman Sachs, one of the largest banking institutions in the world, has applied for an exchange-traded fund (ETF) linked to the performance of decentralized finance (defi) companies. If approved, the tool will help institutions and retail investors gain exposure to defi assets with the help of regulated banks such as Goldman Sachs.
Goldman Sachs proposes to establish Defi ETF
Goldman Sachs, one of the world’s leading commercial banks, has submitted an application to the US Securities and Exchange Commission to provide an ETF linked to financial assets. The defined ETF is called the “Goldman Sachs Innovative Defi and Blockchain Equity ETF” and it will seek to provide regulated institutions with access to these technologies. The fund’s performance will be linked to the Solactive Blockchain Technology Performance Index.
The index tracks the technology industry portfolio that invests in blockchain technology. The index includes companies such as Nokia, Alphabet, IBM, Microsoft and Overstock. This will be the first ETF designed to capitalize on the popularity experienced by the defi industry this year. As Bitcoin.com News reported in June, Goldman Sachs has recently been wooing the cryptocurrency field, cooperating with Galaxy Digital to provide Bitcoin futures products.
Big banks seek crypto rule
The document is just another proof that big banks are now interested in introducing their services and structures into the cryptocurrency market. Although many of them ignored cryptocurrencies in the beginning, they are now focusing on integrating investment products designed to bring traditional investors into the crypto space.
Goldman Sachs released a report on the state of the cryptocurrency market earlier this month when it stated that ether may surpass Bitcoin as the most important cryptocurrency because the former has the “highest practical use potential.” This view of the crypto ecosystem may have driven the ETF application proposed by investment banks, which focuses on tracking defi and blockchain-based companies.
A recent survey conducted by the bank also concluded that due to a variety of factors, high-net-worth households are using cryptocurrency as an investment tool. These include “after one year of unprecedented global monetary and fiscal stimulus, rising inflation, long-term low interest rates, and other macroeconomic developments.” The survey pointed out that the real audience expects cryptocurrency investment products from regulated sources.
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