Thursday, April 18, 2024

Goldman Sachs has plans of creating a DeFi and blockchain ETF

Goldman Sachs is currently planning to create a fund that’s exchange-traded. This fund will focus on companies that are developing blockchain technology and decentralized finance. The US-based bank recently filed an application with the Securities and Exchange Commission. In the application, the company stated that it has plans of using the Decentralized Finance and Blockchain Index of Solactive as a benchmark for its exchange-traded fund (ETF).

A minimum of 80% of the fund’s assets will be invested in securities, stocks, and depository receipts that are included on the Decentralized Finance and Blockchain Index. The index’s design is meant to provide greater exposure to companies that are digitizing finance and implementing blockchain technology.

To be a part of the fund, the average daily trading volume of a stock must be at least $1 million with a minimum market capitalization of $500 million. Some confusions have also come to the fore in this matter, as there is no Decentralized Finance and Blockchain Index mentioned on Solactive’s website. However, Solactive cleared the air by stating that Goldman Sachs had actually referred to its Blockchain Technology Performance Index. The index includes renowned companies such as Nokia and Accenture.

Following this clarification, a report was released by Goldman Sachs, which highlighted the growing demand for crypto assets among the company’s wealthiest clients. According to the report, 60% of super-rich families and their businesses invested in or owned cryptocurrencies. The report also stated that apart from exposure to cryptocurrencies, its clients are also open to the innovations taking place within the digital asset ecosystem.


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