Goldman Sachs is a major investment bank and financial services firm that provides investment management, securities, and asset management services. Lately, the investment bank focuses on DeFi and Ethereum.
Significantly, the firm has filed for DeFi ETF linked to public companies in the sector, according to the SEC. ETFs hold a variety of investments, such as stocks, commodities, bonds, or a combination of these. The implemented fund is called “Goldman Sachs Innovate DeFi and Blockchain Equity ETF”.
The bank states that the Goldman Sachs Innovate DeFi and Blockchain Equity ETF is more traditional than crypto ETFs. Besides, it will give investors exposure to firms “aligned with the themes” of blockchain technology and the “digitalization of finance.”
Since it is linked to company stocks rather than crypto assets, Goldman Sachs’ proposal may have a better chance of success. But investors and the SEC aren’t sure what’s in it yet. The information provided from the firm was scarce.
The bank filed for funding on Defi and according to the firm the fund will be designed to track “the performance of the Solactive Decentralized Finance and Blockchain Index.” Even so, the German index fund company’s website does not list such an ETF.
Confusion on “DeFi” Definition
As simple as it seems, it looks like Goldman Sachs is a bit confused over the definition of ‘DeFi’. The list of “DeFi” funds only includes legacy companies, and even one of them does not fit blockchain or defi organization.
Goldman Sachs’s “DeFi” Fund contains only legacy companies and has 0 crypto-native companies.— Charlie Shrem (@CharlieShrem) July 27, 2021
They’re trying to deceive the public into thinking we already have decentralized finance.
Fix the money, fix the world
(h/t @hfangca ) pic.twitter.com/9b22kh2Qdw
Nokia, Facebook, and Google’s Alphabet were the top three on the list. Payments beasts Visa, Mastercard, and PayPal were also included in the list of stocks tracked. On the other side with tech giants were Microsoft, Intel, and IBM, as well as Chinese e-commerce and telecoms monopolies Baidu, Alibaba, and Tencent.
Earlier this month, the analysts of Goldman Sachs stated that Ethereum for sure will outrun Bitcoin in near future. The firm revealed that Ethereum will be the store of value in the crypto industry. In addition, the firm has turned towards ‘DeFi’ aiming that it will provide gains in the future.
Indeed, many entities have been involved in DeFi, with many stepping in after concluding that Defi would be the future market. Similarly, Goldman Sachs has expressed interest in Defi.
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