US investment bank Goldman Sachs has filed an application with the SEC to launch a new exchange-traded fund (ETF). Goldman Sachs is going to create a special fund. It will be associated with companies working in the field of blockchain technology and the digitalization of funds.
As indicated in the application, the fund will try to provide investment results that, excluding costs, will correspond to the parameters of the Solactive Decentralized Finance and Blockchain Index.
It is not yet clear exactly what constituents this index consists of. Since it not included in the Solactive list. At the same time, it maintains indices that are related to cryptocurrencies and blockchain.
Solactive, which requires a company to be listed on a regulated stock exchange, has market capitalization of over $500 million. And a daily average volume of at least $ 500 million over the past six months. Which is a setback for many. It is also important to note that the Solactive Index recalculated and balanced on a quarterly basis on the third Friday of every February, May, August and November.
As stated in the application of Goldman Sachs, the index needed in order to provide companies with data related to the implementation of blockchain and the digitalization of finance. The application of the term DeFi, as stated in the application, refers to the digitalization of finance. It includes transaction services, loans, insurance, support for payment transactions.
The document emphasizes that the ETF will track not only American companies, but also foreign ones. Traded in developed financial markets, for example, in Japan, Canada, Australia and South Korea.
Goldman Sachs changes its cryptocurrency policy
The application also indicates that the bank is considering various methods to maximize the demand for access in various forms to the cryptocurrency economy.
In July, the bank already provided a survey. It indicated that at least 15 percent of their clients are ready to invest in cryptocurrencies and do it regularly.
Goldman Sachs itself is very skeptical about the cryptocurrencies themselves. But they still have to react to changes in market trends.
Yes, the attitude of regulators to cryptocurrencies does not inspire much optimism. But we are not talking about a complete ban, but only about greater regulation of assets. Against this backdrop, crypto assets are gradually becoming an increasingly interesting investment vehicle. Given that the dollar is depreciating due to inflationary pressures and government actions.
Clients are looking for other assets that would help them avoid inflationary pressures and depreciation. And they do not find better than cryptocurrencies. Since Goldman Sachs does not intend to lose clients, realizing that they will go to other banks, it is gradually changing its policy towards crypto.
Goldman Sachs has enough funds to create such a fund. The only thing left to do is to wait for the application to be reviewed by the SEC and its approval. Perhaps other banking structures will follow his example.
As of the end of July 2021, many companies are awaiting the SEC’s decision on their applications to launch crypto ETFs. Members of the crypto community believe that against the backdrop of a change in the leadership of the Commission in 2021, American regulators will allow the launch of a financial instrument.