Goldman Sachs join Bitcoin ETF race
Leading global investment bank Goldman Sachs has sought approval from the U.S. Securities and Exchange Commission (SEC) to launch a new Exchange Traded Fund (ETF), with an option to invest in Bitcoin.
According to the document filed with the SEC last week Friday, the product would be called Autocallable Contingent Coupon ETF-Linked Notes, with a maturation date set to March 26, 2026. Goldman Sachs explained:
The ETF is an actively managed exchange-traded fund that will invest under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the ETF’s investment theme of disruptive innovation.
Speaking of disruptive innovations, Goldman Sachs has classed companies that rely on or benefit from “products or services under development” under this category. These companies may include industries such as energy, genomics, and transportation, among others. They must also have scientific research to support them. It is on this note that the banking giant mentioned cryptocurrencies as a possible option. The document said:
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.
Big financial institutions are rolling in droves into cryptocurrency. A few days ago, Morgan Stanley revealed that its wealthy clients could now seek Bitcoin exposure.