Yesterday Goldman Sachs filed plans to issue a blockchain-related exchange traded fund (ETF) in the United States, which stands a reasonable chance of getting the go-ahead. To date, the SEC has declined to approve numerous applications for Bitcoin ETFs with pending proposals from Van Eck, WisdomTree, Galaxy Digital, NYDIG and others.
However, Goldman is not aiming to provide direct exposure to Bitcoin. Instead, it’s proposing the ETF will invest at least 80% of its assets in U.S. and international securities, which give exposure to blockchain technology and the “digitalization of finance”. Hence Goldman’s use of the term ‘DeFi’ is rather a loose one.
Many would consider decentralized finance (DeFi) more narrowly as protocols that sit on top of public blockchains offering lending, market making, insurance and other financial solutions. Given that none of these protocols are listed, Goldman’s description as “digitization of finance” is broad.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
