In one of our earlier reports, we stated that Goldman Sachs was thinking of filing for a Bitcoin ETF, this report has now come to fruition as the international banking behemoth has filed a document with the US Securities and Exchange Commission (SEC) for the ETF.
According to available information, the Bitcoin ETF would be known as ARK Innovation ETF and it would seek to invest a minimum of 65% of its assets in foreign and domestic equity securities of companies related to “disruptive innovations.”
In the filing, Goldman Sachs states that
The ETF may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The ETF’s exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the ETF’s portfolio.
Like Goldman Sachs, Like Fidelity
In another development, Fidelity Investments is also preparing to launch its Bitcoin ETF as it has filed a prospectus with the authorities.
A subsidiary of Fidelity, FD Funds Management, stated that the ETF would be known as Wise Origin Bitcoin Trust. The ETF would be using the Fidelity Bitcoin Index to keep track of the performance of the leading crypto asset.
Notably, the Fidelity-powered ETF has no plans to sell BTC, however, it plans to use the digital asset as payment for some expenses which under IRS regulation is tantamount to selling the asset.
While Brazil and Canada have granted approvals for different Bitcoin ETFs, the United States is yet to approve any of the filing it has received. The authorities have refused to assent to any of the application because it believed that the market was not yet ready. But despite the reluctance of the SEC, this has not stopped organizations from filing for the ETFs as companies like VanEck and a host of others have submitted their application to the commission.