The world’s largest investment company, Goldman Sachs, has recently applied with the Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that would give public firms in decentralized finance and blockchain worldwide prominence.
The prospectus was unclear, but it said that the fund would invest at least 80% of its assets in firms that promote blockchain technology and financial digitalization.
In recent months, Goldman has increased its cryptocurrency operations. For example, it is reopening its crypto trading platform to assist clients such as institutional investors in dealing with public listed Bitcoin futures.
It also announced intentions in June to provide options and futures trading in Ether, the second-largest cryptocurrency behind Bitcoin.
Goldman’s application comes as institutions take notice of the DeFi sector, with Grayscale, a major crypto asset management, announcing intentions to create a decentralized finance fund last week.
Goldman would select businesses from Australia, Canada, France, Germany, Hong Kong, Japan, South Korea, Switzerland, the Netherlands, the United Kingdom, and the United States.
The SEC is presently evaluating several bitcoin ETF applications and has postponed judgments on most of them. Although VanEck and WisdomTree have also registered for Ethereum ETFs, Goldman appears to be the first DeFi-related ETF application.