Goldman Sach

Goldman Sachs “DeFi” ETF is in Name Only

As institutional support continues for the crypto industry, Wall Street investment bank, Goldman Sachs, has taken its crypto adventure to another level with its recent filing for an Exchange-Traded fund which it claims is geared towards decentralized finance space. 

The Wall Street banking giant had filed for a DeFI ETF with the U.S. Securities and Exchange Commission (SEC). Per the filing, the product would offer controlled exposure to Defi for public companies willing to invest in the sector. 

Although information concerning this filing remains minimal, it is known that the proposed fund would be called, “Goldman Sachs Innovate DeFi and Blockchain Equity ETF”  and it would be providing investment opportunities and results that are identical to the performance of the German indices provider, Solactive. 

Also, it is expected that the investment would be investing as much as 80 percent of its assets in securities, stocks, and fintech firms that are featured in the index.

Goldman Sachs Misconception of DeFi

While many would view Goldman Sachs recent entry into the Defi space as another indication of the growth of the space, it appears that the firm might really not have a full grasp of what the term means.

A closer look at its “Defi” investment fund would show that the Solactive index which the bank would be using largely consists of US tech firms and telecoms companies. 

Firms that can be found on the index include multinationals like Nokia, Facebook, Alphabet, Visa, Mastercard, PayPal, Baidu, Alibaba and a host of others. None of these companies is a wholly blockchain firm nor a crypto firm, making it difficult to accept the firm’s claim of providing access to DeFi for its investors.

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