Not so DeFi – In recent months, the decentralized finance (DeFi)
ecosystem has experienced unprecedented growth. Unsurprisingly, this growth has attracted the curiosity of traditional investors who are now looking to gain exposure to it. This time, it is the mega-bank Goldman Sachs that wants to create its DeFi ETF with a potentially surprising composition.
Goldman Sachs fond of DeFi
Thus, after gradually accepting the innovation and investment opportunity that Bitcoin represents, the institution now seems to be opening up to the rest of the ecosystem.
Indeed, on July 26, the SEC website published a filing by Goldman Sachs regarding the creation of a DeFi exchange-traded fund (ETF). According to the document, this ETF “seeks to provide investment results that closely match, before fees and expenses, the performance of the Solactive Decentralized Finance and Blockchain
Unfortunately, it is impossible to find the composition of said index, as it does not appear on the Solactive website.
A “DeFi” ETF with a surprising composition
Further on in the form sent to the SEC, Goldman Sachs specifies what types of assets will be held by this fund. We then learn that “the index is designed to provide exposure to companies that are aligned with 2 key themes: the implementation of blockchain technology and the digitization of finance.”
As a result, it would appear that neither Bitcoin, Ethereum nor DeFi assets will be included in this fund.
In fact, even though this one is similar to the Blockchain Technology Performance-Index fund, offered by Solactive, we will find many companies presented as working for the democratization of blockchain, although they are not the ones we would have mentioned first within the crypto ecosystem.
It is possible to mention companies, such as Nokia, Facebook, Alphabet (Google’s parent company) or even Accenture. So, not really the companies we would have expected in a “Blockchain Technology” fund.
<img src=”//www.w3.org/2000/svg’%20viewBox=’0%200%200%200’%3E%3C/svg%3E” alt=’Composition of Solactive’s Blockchain Technology Performance-Index fund showing companies that don’t have much to do with the crypto and blockchain universe” /><img src=”https://yellowrocketagency.com/wp-content/uploads/2021/07/img_6101d65154779.png” alt=’Composition of Solactive’s Blockchain Technology Performance-Index fund showing companies that don’t ont have much to do with the crypto and blockchain universe” />Composition of Solactive’s Blockchain Technology Performance-Index fund – Source: Solactive
This fund will likely be composed solely of stocks from certain markets, as the SEC document explains
“The eligible equity universe consists of common equity securities, including depositary receipts, of companies located across developed and emerging markets worldwide, listed and traded on major exchanges in selected developed markets, including: Australia, Canada, France, Germany, Hong Kong, Japan, South Korea, Switzerland, the Netherlands, the United Kingdom and the United States.”
Goldman Sachs enjoying the buzzword?
While we don’t have the exact composition of the fund, if it were to take over some of the companies listed in Solactive’s Blockchain Technology fund, it will be complicated to understand how it carries the name “decentralized finance and blockchain”
Even worse: we can wonder if Goldman Sachs doesn’t simply want to take advantage of the DeFi craze by using this buzzword
for its new fund, without including companies from the ecosystem.
In parallel, the company Grayscale has also created a DeFi index
, but one that is quite coherent. Indeed, it is composed of 10 assets, all from decentralized finance on Ethereum, and seems to propose a weighting of each asset relatively logical.
Even if Goldman Sachs obviously doesn’t understand much about it, Decentralized Finance foreshadows the future of the crypto-currency economy. To best prepare for this future, you can currently get up to €100 in cryptocurrencies for free (subject to a minimum deposit of €50)! Take advantage of this offer, while supporting the work of the Journal du Coin by using this affiliate link to sign up for the reference platform Swissborg (see offer conditions on the official website).