Goldman Sachs, one of the biggest banking institutions in the world, has filed an application to offer an Exchange Traded Fund (ETF) linked to the performance of decentralized finance (defi) companies. If approved, the instrument would allow institutions and retail investors to gain exposure to defi assets through a bank such as Goldman Sachs.

Goldman Sachs Proposes Defi ETF

Goldman Sachs, one of leading commercial banks in the world, has introduced an application to the SEC to offer a defi-linked ETF. This defined ETF is known as “Goldman Sachs Innovation Defi and Blockchain equity ETF” and would provide exposure to these technologies to regulated institutions. The performance of the fund would be linked to the Solactive Blockchain Technology Performance-Index.

This index tracks a portfolio tech industries that have invested in blockchain technology. This index includes companies such as Overstock, Alphabet and IBM. This ETF would be the first to take advantage of the growing popularity of the defi industry this year. As Bitcoin.com News reported in June, Goldman Sachs has been courting the cryptocurrency sector recently, having partnered with Galaxy Digital to provide bitcoin futures products.

Big Banks Go for Crypto Domination

This filing is another indication that big banks are interested in offering their services and structures on the cryptocurrency market. Although many of these banks initially ignored cryptocurrency, they now focus on integrating investment products designed to attract traditional investors into the crypto sphere.

Goldman Sachs released a note on the state of the cryptocurrency market earlier this month when it stated that Ether could surpass Bitcoin as the most important crypto because the former has the “highest real use potential.” This view of the crypto ecosystem could have fueled the ETF application made by the investment bank, focused on following defi and blockchain-based companies.

A recent survey made by the bank also concluded that high net worth families are turning to crypto as an investment vehicle, due to several factors. This includes “higher inflation and prolonged low rates and other macroeconomic developments after a year of unprecedented global fiscal and monetary stimulus.”

What do you think about the Goldman Sachs defi ETF application? Please leave your comments below.

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