Mark Weaden
Investment banking firm Goldman Sachs applies for a crypto-related Exchange-traded fund (ETF)
There have been a lot of big moves for cryptocurrency in the last 24 hours, with the rise in the price of Bitcoin being the focus as it reached beyond $40,000 for the first time in 6 weeks. Another positive piece of news is Goldman Sachs' application for a crypto-related ETF, which is the latest in a long list of positive moves into the crypto space from major financial institutions.
The investment would see 80% of Goldman Sachs’ assets move into companies that are driven towards improving blockchain technology and working in the fintech industry in general. The report states that Goldman Sachs Group’s asset-management subsidiary has applied with the US Securities and Exchange Commission (SEC) to offer an ETF focused on securities of crypto-related companies.
According to the filing submitted to the SEC, The Goldman Sachs Innovate DeFi and Blockchain Equity ETF would track the Solactive Decentralized Finance and Blockchain Index. The hope from the execs at Goldman is to increase customers’ exposure to DeFi, allowing its customers to complete peer-to-peer trading using apps developed by fintech firms.
Moreover, as you’d expect, Goldman is invested into blockchain technology that can help to complete payments and transactions using blockchain digital ledgers. We’ve seen similar moves from other traditional banking companies, such as VISA and Mastercard, who recently invested in various companies of a similar ilk, looking to further their reach by providing a platform for crypto holders to purchase.
Goldman Sachs also relaunched its crypto trading desk this year, after taking a 3-year hiatus. Customers will be able to trade in futures tied to Bitcoin, as well as Ether. If things go ahead it will be another big move for crypto and more importantly its users. Given that the SEC approved the application we will see the ETF available as soon as is practically possible.
