Goldman Sachs Asks For Crypto Linked ETF. Key things to know

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The asset management arm of investment banker Goldman Sachs Group has filed an application with the United States Securities and Exchange Commission (SEC) to offer an exchange-traded fund (ETF) focused on securities of related companies to cryptocurrency. The Goldman Sachs Innovate DeFi and Blockchain Equity ETF would track the Solactive Decentralized Finance and Blockchain Index, according to the filing.

According to the details, the fund would invest at least 80% of its assets, excluding collateral held by securities lending, in securities, certificates of deposit and shares of companies included in the index.

Goldman hopes to provide exposure to decentralized finance or DeFi, which is one of the hottest areas of crypto growth. These are apps that enable peer-to-peer lending, borrowing and trading, and they hold a total of around $ 64.5 billion in funds, according to tracker DeFi Pulse. The other area of ​​potential ETF investment, blockchain, could include any company that develops digital ledgers for applications like payments.

Goldman has stepped up its work on cryptocurrencies in recent months. It is restarting its crypto trading desk to help clients like hedge funds trade Bitcoin-related exchange-traded futures contracts. In June, it also announced its intention to offer options and futures on Ether, the second largest cryptocurrency after Bitcoin.

The deposit joins more than a dozen crypto ETF applications ahead of the SEC. Goldman plans to offer the ETF as soon as possible after the effective date of the registration statement, ”the file said. The fund’s shares are expected to be listed for trading on a national stock exchange.

(With contributions from Bloomberg)

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