finance

Goldman Asset-Management Arm Files to Offer a Crypto-Related ETF



© Reuters.

(Bloomberg) — Goldman Sachs (NYSE:) asset-management arm filed an application Monday with the U.S. Securities and Exchange Commission to offer an exchange-traded fund focused on securities of cryptocurrency-related companies.

The Goldman Sachs Innovate DeFi and Blockchain Equity ETF would track the Solactive Decentralized Finance and Blockchain Index, the filing said. The Fund would invest at least 80% of its assets, exclusive of collateral held from securities lending, in securities, depositary receipts and stocks of companies included in the index.

Numerous crypto-related companies have been going public, or discussing the potential of doing so, in recent months — offering more options for equity investors looking to get into the space. The U.S.’s biggest crypto exchange, Coinbase Global Inc., debuted in the spring. Exchanges like Kraken and FTX have been mulling going public as well, and there are also vehicles like the Grayscale Bitcoin Trust.

Goldman is hoping to offer exposure to decentralized finance or DeFi, which is one of crypto’s hottest growth areas. These are apps that allow for peer-to-peer lending, borrowing and trading, and they hold a total of about $64.5 billion in funds, according to tracker DeFi Pulse. The other area of the ETF’s potential investment, blockchain, could include any companies that develop digital ledgers for applications like payments.

Goldman has been ramping up its cryptocurrency work in recent months. It’s restarting its crypto trading desk to help clients like hedge funds deal in publicly traded futures tied to Bitcoin. In June, it also announced plans to offer options and futures trading in Ether, the second-largest cryptocurrency after Bitcoin.

See also  Historic Edinburgh brewery site set for a new lease of life

Goldman has filed for an ETF at a time when has been stuck in a trading range of about $30,000 to $40,000 for weeks, well off its mid-April record near $65,000.

Goldman is planning to offer the ETF “as soon as practicable after the effective date of the Registration Statement,” the filing said. Shares of the fund are expected to be listed for trading “on a national securities exchange.”

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more