Goldman Sachs (NYSE: GS), a leading US investment bank, has applied for a decentralized finance (DeFi) exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). A report released this news on July 27, citing the request, which the bank filed yesterday. While the presentation was not detailed, he noted that the ETF seeks to expose investors to the DeFi and blockchain sectors.
According to the application, the fund is called Goldman Sachs Innovate DeFi and Blockchain Equity ETF. The presentation added that the ETF aims to provide investment results that closely correspond, before fees and expenses, with the performance of Solactive’s Blockchain and Decentralized Finance Index.
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In the presentation, Goldman Sachs revealed that the fund intends to achieve its investment objective by investing at least 80% of its assets in securities, included in its underlying index, depository receipts representing receipts in its underlying index and underlying stocks. with respect to depository receipts included in its underlying index.
The bank further noted that the fund would invest in shares of companies located in developed and emerging markets around the world. These include Australia, Canada, France, Germany, Hong Kong, Japan, South Korea, Switzerland, the Netherlands, the United Kingdom, and the United States.
Mixed Reactions from the Crypto Community on Twitter
Upon receiving this news, some members of the crypto community on Twitter thought he was optimistic. However, an identifier by the name of TLC Education, tweeted that the fund is not a DeFi ETF, suggesting that Goldman Sachs is only leveraging the DeFi name.
To back up these claims, the user posted a screenshot showing the background components. In fact, as of July 23, the Solactive Blockchain Technology Performance Index only included top companies, including Facebook, Nokia, Microsoft, Visa, Mastercard, PayPal, Alibaba, and Lenovo, among others. While some of the listed companies are dabbling in blockchain technology, not a single one has ventured into DeFi.
This news comes as the SEC continues to delay its decision to rule on the various ETFs it is currently reviewing.
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