Goldman Sachs files a DeFi ETF application with the US SEC

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and… read more.
on Jul 27, 2021
  • The fund is titled Goldman Sachs Innovate DeFi and Blockchain Equity ETF.
  • Per the filing, the ETF seeks to expose investors to the blockchain and DeFi sectors.
  • Crypto adopters claim the fund is not a DeFi ETF because it comprises stocks of mainstream firms.

Goldman Sachs (NYSE: GS), a leading American investment bank, has filed for a decentralised finance (DeFi) exchange-traded fund (ETF) with the US Securities Exchange Commission (SEC). A report unveiled this news on July 27, citing the application, which the bank filed yesterday. While the filing was not detailed, it noted that the ETF seeks to expose investors to the DeFi and blockchain sectors.

According to the application, the fund is dubbed Goldman Sachs Innovate DeFi and Blockchain Equity ETF. The filing added that the ETF aims to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive Decentralised Finance and Blockchain Index.

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In the filing, Goldman Sachs disclosed that the fund intends to achieve its investment objective by investing at least 80% of its assets in securities, included in its underlying index, depositary receipts that represent receipts in its underlying index, and underlying stocks in respect of depositary receipts included in its underlying index.

The bank further noted that the fund would invest in stocks of companies located across developed and emerging markets worldwide. 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 it was bullish. However, a handle by the name TLC Education, tweeted that the fund is not a DeFi ETF, suggesting that Goldman Sachs is just piggybacking on the DeFi name.

To back these claims, the user posted a screenshot showing the components of the fund. Indeed, as of July 23, the Solactive Blockchain Technology Performance Index only comprised mainstream 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 delaying its decision to rule on the several ETFs it is currently reviewing.

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