Goldman Sachs Files An 'Innovate DeFi And Blockchain' ETF

Wall Street giant Goldman Sachs Group Inc GS plans to launch a new investment product that will give investors exposure to the DeFi and blockchain industry.

What Happened: According to a recent filing with the U.S. Securities and Exchange Commission, the Goldman Sachs Innovate DeFi and Blockchain Equity ETF will track the performance of the Solactive Decentralized Finance and Blockchain Index.

“The Index is designed to deliver exposure to companies that are aligned with two key themes, the implementation of Blockchain Technology and the Digitalization of Finance,” reads the filing.

However, based on the composition of Solactive’s existing blockchain indices, it is unclear exactly how much actual exposure to the DeFi industry Goldman’s proposed ETF will deliver.

Solative’s index methodology requires a publicly-traded company with a market cap of at least $500 million to be listed on a regulated stock exchange and have an average trading volume exceeded $500 million over the past six months.

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As a result, its existing blockchain indices consist of companies with known exposure to cryptocurrency like Coinbase Global Inc COIN, MicroStrategy Inc MSTR, PayPal Holdings Inc PYPL, and a number of publicly-traded Bitcoin BTC/USD mining companies.

Price Action: Goldman Sachs shares closed 0.23% lower on Tuesday, closing at a price of $374.

At the time of writing, Bitcoin was trading at $38,235, up by 3.32% over the past 24-hours.